How many people do you know who own their car? Not by way of a current loan; how many people do you know who own their vehicle outright with no car payment? There are far more people who have payments than don’t, and each of them should have something else that, in the mind of a PG County Car Accident Lawyer, pairs perfectly with car payments: GAP insurance.
What is GAP Insurance?
If you get into an accident and your vehicle is totaled, your insurance company will typically send you a check for what your vehicle is worth. And they should… that’s why you have insurance, right? However, what too many drivers fail to remember is that the coverage covers only the vehicle’s worth… not what you owe on the loan.
GAP insurance swoops in and saves the day because it’s only purpose is to cover the cost of what you owe on the vehicle, so you aren’t left paying thousands of dollars on a vehicle that you no longer have because of an accident.
The Worst-Case Scenario
Let’s say you just bought a brand-new car. You get a loan to pay for it at $32,000. You’ve got everything all lined up with your insurance policy and you’re all set. Then you drive home, and you get into an accident. Just like that, your brand new car is totaled.
The insurance company tells you it will gladly cover your car’s worth, which sounds nice, but when you hear how much they’re sending you, things sour. Because vehicles depreciate in value the moment they’re driven off the lot, your brand-new car is now worth $22,000. But you took a loan out for $32,000. Now you have no car and are $10,000 in debt.
This is, by far, a worst-case scenario, but know that similar scenarios have happened enough to inspire GAP insurance. This is an optional add-on with any reputable auto insurance provider and in the eyes of PG County car accident lawyer Larry Lapidus, an absolute must if you are making car payments.
Do You Need GAP insurance?
If you are a multi-millionaire and can afford to pay for a car you don’t have, then no, you don’t need GAP insurance. If you have no car payments and own your car outright, then no, you don’t need GAP insurance.
However, if you have a car payment and can’t afford to lose your car and still make payments, then YES, you NEED it. It can cost as little as $10 a month, which is quite inexpensive when you consider the alternatives.
Talking to a Car Accident Attorney About Your Coverages
If you’ve been in a car accident in Prince George’s County or if you’ve been in a car accident in Washington, DC reach out to a car accident lawyer at The Lapidus Law Firm today. The experienced and skilled car accident attorneys will comb through every detail – large and small – of your auto insurance policy to make sure you get all the coverages for which you are entitled.
Call The Lapidus Law Firm today for a free consultation in Prince George’s County at (301) 605-4296 or In Washington, DC at (202) 785-5111 and call your insurance company today to ask about GAP insurance. If you or a loved one has been injured in your car accident, the PG County Personal Injury Lawyers at The Lapidus Law Firm will assist with your case as well.