You must be feeling really great on your new car, enjoying those swift drives and those cool rides, when unfortunately you meet an accident and your car is damaged or a car thief steals your car, of course you are sad. And add to your misery you haven’t even completed the car payments and find that you will be paying for that which you no longer own. Hence in situation like this when your car is considered ‘totaled’ GAP insurance comes into play.

Gap insurance policy provides protection to the policy holder in case his car is damaged in event of an accident or theft. The cheap life insurance quotes actually covers the difference between the cost of the car and worth of the car at the time of the damage.

Gap insurance or ‘totaled insurance’ as it is also called prevents you from paying extra by covering the difference between the money you owe to the money to your car financer and the amount you get reimbursed in case your car has totaled.
Accidents and thefts are the most common coverage. However depending on your policy they might cover other things as well. It is better to consider the coverage before you go for gap insurance.

Gap insurance is not included in your auto insurance as assumed by most people. You will have to buy it from the dealerships or from insurance companies who offer it. You will find a number of online companies offering you gap insurance.

While gap insurance is mostly recommended for new cars, you can get it for your new used car as well. Some companies may offer you gap insurance even in older cars provided your car is not older than 8 years.

Gap insurance is needed for a leased car because a leased car is the responsibility of the buyer. No matter who ever owns the car, the manufacturers or the dealers; anything that happens to the car is the legal responsibility of the buyer to compensate for it. Thus gap insurance provides protection to the buyer. Most lease agreement often includes gap insurance.

Gap insurance is not a legal necessity. Nor do all car financing companies suggest you to buy it; however, they do recommend you to buy auto insurance. And for a leased car it might be wise to buy gap insurance. The choice is still yours.

You may not need gap insurance, in case your cheap life insurance cover has already included it, or you have auto policy that includes loans and pay-offs and pay-off benefits, your car was over priced. If you have enough cash reserves to over come the gap when your car is totaled then you may not even require it. If you do not need gap insurance then you are free not to buy it.

 If you got to buy gap insurance then you must remember that policies of insurance companies vary, so get few quotes for gap. Finally paying in cash is a better option, you will not have any debts, so no question of paying anything even if your car is totaled.