How Important Is Gap Coverage?
Very Important. Gap insurance coverage is insurance for your vehicle (loan or lease) which provides protection for the amount greater than the actual cash value you are liable for (how much you still owe) after the total loss of your vehicle from either theft or from an automobile accident. http://http://www.dellutrilawgroup.com/lawyer-attorney-1351138.html
For example, if, as a result of an auto accident, your vehicle is a total loss, and it is worth $8,000.00 but you still owe $12,000.00 to the lender or lease holder, you are responsible for the difference. In this scenerio, Gap coverage would cover the difference that is still owed ($4,000.00 in the prior example).
When we first meet with a client after an auto accident, it is common that the client will be "upside down" on what they owe on their vehicle versus what their vehicle is worth. Most clients are shocked to learn that even if the accident was caused by the negligence of another (the at fault party), the at fault party and/or their insurance carrier is only liable for the actual cash value of the client's vehicle.
The at fault party is not responsible or liable if the client owes more than the car is worth. At The Dellutri Law Group, http://www.dellutrilawgroup.com/lawyer-attorney-1351138.html, we often see clients devastated when they learn that they still owe money on a car that they can longer drive or use.
The best way to help you and your family avoid this situation is to ensure that your automobile policy provides for Gap coverage.
