Gap Insurance Details

GAP Insurance Explained

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If you have a financed car or are going to contract one, you might run across the term of GAP Insurance. This article will explain you what it is, and whether or not you need it.

Gap Insurance Details

GAP stands for Guaranteed Auto Protection or Guaranteed Asset Protection. A GAP insurance policy will cover the negative equity, i.e. the difference between what you currently owe on the car and its current market value. It may sound complicated and fancy, but it’s not. Here is an example that should explain the concept.

Assume you have contracted a $36,000 car which you are going to pay in 36 monthly installments of $1,000 each. After half a year, you have an accident and the car gets totaled. Your Collision or Comprehensive policy kicks in, so you would be technically reimbursed for your loss. However, the insurance company evaluates your car and says that it was only worth $22,000 at the moment of the accident. You still owe $36,000 – 6 x $1,000 = $30,000 on it (initial value minus the payments you have already done). The lienholder will ask you to provide the remaining $8,000. Here is where a GAP policy comes in handy — it will cover the $8,000.

Sounds like a good policy to have, doesn’t it? Well, not always.

Let’s assume that, instead of 36 months, you agreed to pay it off in 12 months. (For the sake of the example we are going to assume that you would still be paying $36,000 for it, i.e. $3,000 a month. This never happens in real life.) After six months you will have paid $18,000, leaving you with $18,000 to go. Given that the current market value of the car is of $22,000, as per the insurer’s evaluation, you are actually going to make a profit of $4,000. The GAP policy would be useless in this scenario.

You should consider buying a GAP policy when you know that the market value of the car will go down sooner than you will be paying it off. That’s easier to be said than done though, as nobody can foresee the future market trends and what a vehicle will be priced after a certain period of time. You can, however, use the Kelley Blue Book tool to get a ballpark figure on car rates and how their market value decreases in time.


New York Auto Insurance

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New York is the place to be for many people, however when it comes to the auto insurance that they will have to carry according to the state requirements, then they are going to find that they are going to pay the price. The average price in the US for auto insurance at the minimum level is around $1600. However, in the state of New York, the person will find that the average cost is around $2800. There are those cities within New York that are slightly lower than the average that people are paying. For example, Buffalo has an average of around $2000. There are other factors that the person will have taken into consideration when they get insurance such as their marital status, occupation, type of car that they drive, driving record and their credit history. This high rate does show a need for people to shop around for the lowest rate in order to save money. They will find that there are several companies in New York that they can through in order to get the auto insurance that they need. No matter what company the person goes with they should make certain that they are licensed to practice in NY and know the rules of minimum requirements in order to avoid any problems in the future.

The minimum requirements for insurance in the state of NY is a bit more than what other states are going to require. However, in the state that has some of the most populated cities in all of the United States, and then it makes sense that their requirements are a bit stricter. The state requires that everyone on the roads carry bodily injury liability in the form of $25,000 per person and a $50,000 limit for every accident. They also require Property Damage liability with a maximum of $10,000 and personal injury protection with a maximum of $50,000. They also require that a person carry uninsured or underinsured motorist bodily injury in the forms of $25,000 per person and a $50,000 limit.

NY has a No Fault system in place, meaning that when you get into an accident then you are paying for your damages no matter if you were hit or if you hit someone. This makes many people feel as though they should carry as much coverage as is necessary in order for them to feel better about being on the roadways. And they are right. They will find that they will want to carry the amount of coverage that is going to ensure that they do not have to pay so much out of pocket and that they are going to have a vehicle to drive. Therefore, many people that have more expensive vehicles find that the best course of action is to carry full coverage on their vehicles.

The state does require that the person carry proof of their insurance at all times. The best way to do this and to ensure that you have always proof in the car is through putting the ID cards provided by the car insurance company into the car and leave it there. Those that are caught driving without proof will have the option of going to court and showing proof to get this dismissed. However, if the person is caught driving without insurance they will find that they could be fined from $150 up to $1500 for this neglect. They can also face getting their driver’s license suspended for up to one year. And since the person is caught driving without insurance, they are going to find that they have to pay higher premiums since they are considered to be a high risk driver.


What to do when you meet with a road accident

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Getting into a road accident is by no means a fun adventure. It is a time of frustration and nerves. The person that is involved in a road accident will want to take several steps in order to ensure that everything goes as it should. This will make it much easier for insurance purposes and for when the police show up to investigate the accident. When a road accident occurs, depending on the severity of this, the person has the choice to move their vehicles off of the road, especially if this happens on a major highway or leave them were they are parked. If anyone is hurt, then leaving the car parked is the best decisions since they do not want to risk hurting someone even more through moving. And in the situation in which both cars are unable to move, then sitting there until paramedics and police arrive is the best thing to do.

 After the accident happens, everyone should check to ensure that there are no major injuries, once this has been established then the phone calls need to be made. The person needs to call the police for the accident no matter what in order to get a report written up which will go to their insurance companies. If there are people injured request a paramedic and warn the dispatch of what is wrong with the person if you know. If the vehicles are in any danger of catching fire, then the person should back up a reasonable and safe distance in order to ensure that people stay safe. During this time, having a third party not involved directing traffic around is handy so that no one flies upon the wreck and becomes involved as well. During this time some people choose to take pictures of the damage, which is where a picture phone or a disposable camera in the car comes in handy. If you do this, the person should be sure to get all angles and then take surrounding pictures of the landscape so that there is no denying where this happened at later.

 Once the police arrive, you will need to give your statement as to what happened and so forth. The police officer will give you a copy of the report or they will tell you when to come to the department in order to get this. In the police report, the person needs to be completely honest and include all the details that they can since this will be used as the main way for the insurance companies to pay out, and for those times in which there are questions, the police report will be what people look at to answer these. During this time, the person may have to have the car towed to the nearest place in order to have the car worked on, this is sometimes done with whatever company that the police usually use. In most cases, the person will have this towed to the location of the towing company and they can hold onto this until the person is ready to have it worked on. In most cases, the person will be charged for each day that it sits on their lot, yet this could be something that the insurance company is going to cover.

 The next step is to call your insurance company and let them know what happens. This is when you are going to begin the claim process. The sooner that you get this started the better off that you will be. Since it could take a while for this to go through. If you are the one that is found at fault, you should be certain that you are getting the victim’s information in order to pass on dates and other types of information to them. You do not want the whole ordeal to go to court, thus be sure that you are checking your bases beforehand. During the meantime you may have to borrow a car or get a rental car in order to ensure that you are able to get back and forth. Plus, this is the time in which any deductible is going to have to be paid for car repairs and the like.


Process to Claim Car Insurance after a accident

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After an accident, there are several things that are running through a person’s mind. They may find that they are thinking about the claim process and what they need to do in order to ensure that this runs smoothly. Those that file a claim with their auto insurance company should be aware that these claims are not approved within a day or so. They take several days to complete and once they are completed, depending on the type of accident, those that were involved and the like could mean waiting a few more weeks for an answer. It is not unheard of for someone to wait three or more weeks to hear back about a claim. For those that have their car damaged, they could be given a rental vehicle during this time depending on their car insurance and if this is a coverage that they have on there. Or they could have to drive the car as best as they can, as long as it does not break any major laws that are in the state.

 The first step in getting your claim processed is to ensure that you have all the necessary information for your insurance company. They are going to require that any police reports be faxed to them or taken to their office, while they will also want to get your side of the story as to what happened. If there were other people involved in the accident they are going to want to know this information as well, including just how much damage their car had and if they were taken away by ambulance or treated for injuries. They will want to see any pictures that you have taken at the scene in order to log this as evidence in their case. In the event that it was someone else’s fault and you live in a tort state, then the insurance company will more than likely tell you to deal with the responsible parties insurance, instead of yours since they are going to be paying for the damages.

 Once all this information has been processed, the auto insurance company will want to look at the vehicle that has been damaged. This is where they will deem just how much damage has been done and just how much this will cost. In most cases, they will either come to the car if it is unable to be moved or if this is able to be driven, they will ask that the person bring this by in order to look at it. The company uses a body shop in their network that will give them the prices of how much it would cost to fix. Once the price has been determined, the auto insurance company will decide as to whether they should fix this or total the vehicle out. Usually a vehicle is only totaled when the cost to fix this is more than the actual value of the vehicle.

 Once the estimates have been received, and people know just how much of their car insurance is going to pay for the damages, then comes time to get the car fixed. Most companies are going to have the choice of three companies in the surrounding area that the person can go through in order to get their car fixed. And when getting this fixed through the company the person will find that they do have a guarantee on the work. Those that are fine with going through their own company will get a check from the insurance company to use to fix their car. The person should note that this check is meant to be used for their car and not used for any other purposes.


Getting Cheap Florida Auto Insurance

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Those that live in Florida are going to find that their auto insurance is a bit stricter than other states. The reason for this is that Florida drivers are known for aggressive driving and there are more tickets that are issued in this state than there are in many other states in the US. With that being said, auto insurance is mandatory in the state, and for those that are getting this auto insurance they should make certain that they are carrying at least the minimum coverage. Though, they are going to find that having more than the minimum coverage is going to save them tons of money in the long run if they were to get involved in an accident. There are several factors that the person must consider when getting auto insurance in Florida. For one, they must have a Florida insurance policy that is going to be provided by a company that actually resides in Florida. This is a part of the requirements that the state sets. This should not be a problem as long as the person uses those companies that they find in the state, and they will still find that they can get competitive prices since there are so many companies to choose from.

Secondly, the person will find that the minimum requirements that the state has a bit more lenient than other states, despite the fact that the state has more aggressive drivers and accidents happen. The minimum requirements are $10,000 personal injury protection and $10,000 for pretty damage. With the minimum coverage the person will find that if their car were to get wrecked due to mother nature that they are going to be paying this all out of pocket. This is something that most drivers do not think about however, Florida does get hit by dangerous thunderstorms that produce hail frequently as well as tropical storms and hurricanes. Thus, the person is living in an area in which they could very well see some bad weather that ends up with their car damaged. This is why most people include some other types of coverage’s in order to be sure that they are protected.

Those that live in Florida can expect to pay a bit more for their car insurance than in other states, and the amount that is average is around $1900. The city in which the person resides is going to make a big difference as to how much the person is paying for their auto insurance. They will find that major cities such as Miami have an average of $2300 for the policy period. These areas are more populated and the roads can become more dangerous because of this, thus companies charge more. There are other factors that will affect just how much the person pays for their insurance, including the age and gender of the driver, their driving history and their credit history.

The state of Florida is a No Fault state meaning that no matter whose fault an accident is, your company is going to be paying out for some of the damages up to the specified amount that is included in the policy. This is one of the main reasons why some people have so much insurance since they want to lower the out of pocket expense for these accidents if this is possible. Those that do have a lease or a new car in which they are paying payments on will find that by state law and the lenders law that they have to carry full coverage insurance, thus the amount that they pay is going to be much more than what other people may pay.


Getting cheap California Auto Insurance

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One of the most populated states in all of the United States is California, and drivers that call this state home should be prepared to pay for their auto insurance. Due to the high number of people in the area, the chances of a person getting into an accident are much higher than in other states that are located in the US. And because of this most people will find that they are going to be paying more for their auto insurance than they would if they were located in other states in order to offset the cost of repairs that the state makes when these accidents happen. Plus, since there are so many people in the state, the chances of the company having to pay out money for an accident are relatively high and companies cover this by racking up rates. With that being said, the average for the entire state in terms of how much people pay for their auto insurance is around $1300. However, this is going to vary greatly with each city that a person claims as their home. In the city of Los Angeles, the person will pay almost $1600 for their auto insurance which is considered to be some of the highest that is found in the United States. Other cities are going to be lower than $1300 if they are not an area that receives a lot of traffic and accidents, as well as car thefts.

Those that are going to be getting insurance in California are going to find that there is a minimum coverage that they must meet. They must carry $5,000 for property damage coverage, $15,000 for injury or death to one person and $30,000 for injury or death to more than one person. Anything that is below this is not going to have the person being considered legal. And they will find that most companies will not sell anything below the minimum requirement. The minimum requirement is just that…it is the minimum, thus if the person were to get into an accident, they are going to find that they have to pay for the majority of the damage that occurs out of their own pocket, which can be a huge problem for some people.

Since the minimum will require that the person pay so much out of pocket, the person is recommended to get more than the minimum coverage. Some examples of coverage’s that are recommended is the underinsured or uninsured motorist coverage, as well as coverage that is going to cover the vehicle from anything other than collision, this concludes if the vehicle is stolen or something along those lines. Vehicle theft is rather high in the state, thus the person will find that they are better off if they are prepared if this does happen.

There are many companies in the state that can provide the person with the coverage that they need. They are going to find that there well over one dozen auto insurance providers. They will want to compare all of these in order to find the best rate for the coverage that they are wanting. Otherwise, they will find that they could end up paying more for the same coverage. Many of these companies allow for people to do this online, which is going to help in giving the person time to shop around before they need a new policy to kick in. The credit rating, driving history and other factors will affect the rates that they are given, and those that are considered high risk can be denied insurance from normal providers. Thus, the person may have to go to specialty companies in order to find the insurance that they need.


What Makes the Best Insurance Company

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When a person is shopping for car insurance they are going to want to go with the company that is deemed the best in providing the auto insurance that they need. Most people that look at these companies are going to know that they are the best, but what is it about a company that deems it as one of the best auto insurance providers that is on the market? Knowing what these aspects are is going to convince many people that they should go with these companies as well.

 One of the first things that attract attention to a company to be the best is the fact that their rates are affordable and that they are competitive with the rates of other companies. When a person does a search to find the cheapest insurance they are going to find that this company is always one that is included. There are those few times in which they may not be included, but in the majority of cases when the driver is  a normal driver with a normal car, they are a company that will appear as a choice. The rates are going to be competitive with the discounts that are offered and the other details that help to make the policy something that people are interested in.

 The customer service of the company must be top notch as well. Those that end up going with a company to find that the company simply cares nothing about them are not going to stay with the company for very long. The customer service relates to how well they answer the questions of customers when they call or visit, the amount of time that the person has to wait in order to talk to someone and the way that they help the person in any situation. Those companies with the very best car insurance are going to be those that go out of their way to ensure that each customer is treated individually and as though they are the entire reason why the company was built.

 The claims service of an auto insurance company is also taken into consideration. In the unfortunate event that someone ends up having to use their claim service, they want to know that the company is going to be there to fight for them. For example, they want a car insurance company that will deal with the other insurance companies involved, provide timely updates about the claim and make sure that they are not stranded without a vehicle. Given that most people will have to take some role in this process, they want the insurance company to be their well-rounded guide.

 Overall, a company is the best when its customers say that it is the best. You can bet that when customers of companies have been with them for more than ten years that they are one company that has it all under control. And those that go with this company are going to be in good hands. Going with a company that is not well known could be something that costs the person in the long run.


Is Your Insurance Adequate?

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One of the most common questions that a person has when it comes to their insurance is if their insurance is adequate? In order to answer this, the person must consider what they believe to be adequate coverage. For some people this is going to mean paying nothing out of pocket and having the ability to have their car returned to them in limited time. For other people it may be paying small amounts for their premium and small amounts out of pocket in the event of an accident. There are a few clues that can help the person to determine if their insurance is indeed right for them or not.

 First off, do they find that the cost that they pay for their insurance is lower than what most other people pay? This could be because they have less coverage. And if this is the case, then they know that they are not protected. The average person has a bit more than minimum coverage on their vehicle. And each state has an average for what people are paying. If you find that the average that you pay is similar to what the state says is average then chances are where the law is concerned, you have adequate insurance coverage.

 However, that does not necessarily mean that the coverage that you have satisfies your needs as being adequate. If you find that the deductible is a high rate, then chances are you are not happy about this and would like to lower it down. Therefore, those you have the coverage that is needed to be legal, it is the small things that adding up to make this coverage something that you are not happy with. It is important that you sit down and look at what you are to pay should something happen and judge as to whether this amount is really affordable or not.

 Secondly, consider the coverage’s that you have. Are these coverage’s that are going to help you? Every state has a minimum that must be met, but the person should decide as to whether the coverage’s that are more than the minimum, meet the requirements for what they want. For example, some people feel better with an insurance policy that includes rental reimbursement, road side assistance, and other extras that simply make them feel more secure. The person will have to decide just what it takes to make them not worry when they are on the road.

 Overall, when deciding if your insurance is adequate or not, the person needs to take into consideration the state minimums. Insurance companies are required to let the person know what the minimum is and to make sure that the minimum is met, thus this should not be something that the person worries about. In other checks, the person will want to make sure that they have what makes them feel comfortable. There is no right or wrong when it comes to the insurance being adequate to fit your needs, as the needs of every person is different. Some people will need more coverage to feel better.


Learning About Insurance Deductibles

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The one thing that people who want lower car insurance hear about is that raising their deductible will lower the out of pocket expense that they are paying for their insurance. And this is true, however, it is not a decision that someone should take lightly. They are going to find that in order to truly discover if this is a good idea that they are going to want to ensure that they know what the deductible is and how this is going to help them in the long run.

 The deductible is the amount that the person would pay if they were to get to the point in which they are going to have to use their insurance. For example, when the person gets into an accident and their collision coverage takes into effect, then the deductible that they are paying is something that is going to go towards fixing the vehicles, and the insurance will not kick in until they have paid the deductible. The deductible that someone pays can be zero, one, two or up to five hundred. Some insurance companies even have a one thousand dollar deductible. They are going to find that the higher the deductible, the lower their premium will be. And for those that want a deductible that is lower, then they are going to be paying a higher premium for their auto insurance.

 So is it a good idea for the person to raise their deductible in order to get a lower insurance premium? This really depends on the person. A huge factor as to whether this is a good decision or not is if the person has a good driving record or not. Those good drivers are those that are not going to be getting into accidents and they are not going to find that they are paying the deductible. However, the chances of someone getting into an accident is higher than what most people think, thus they could face the time in which a small fender bender becomes something that they have to pay for with their deductible.

 For those that want to find the lowest insurance that is out there, then they are going to find that using the higher deductible may be the only option that they have. And this is fine, however, they should make sure that they are prepared to pay the deductible. In reality, the best way to decide on the deductible is to make the deductible in the medium range of what the person can take. Most people find that a 250 deductible is something that they are going to love since it is low enough to afford if they do get into an accident, yet not low enough that they are going to be paying double for their insurance premium.

 A good idea to find out if this is the best option for your or not, is to run your policy with different deductible limits in order to diagnose what the best option for you is. If you find that the lower deductibles suits you better, then go for it. The same goes for those that find that a higher deductible is the best option.


Car Insurance and Car Types

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When it comes time to buy a new car, there is something that everyone should know. And this is just what they can expect to pay for their auto insurance with this particular car. Many people think that it is an old wise tale about how car insurance companies base your rate on the car that you drive. Most people assume that if they are a good driver it does not matter what car they drive, and these people would be wrong in how they are thinking. The car that a person drives can be the ending point for how much their auto insurance is going to be. Insurance company’s take several things into consideration about a car in order to give a rate that is going to cover the cost of the car should they get into an accident or something along that nature. One tale to put to rest is the fact that the color of the car is not something that is taken into consideration and unless the company asks you specifically for what color it is, they have no way of knowing this according to the information that they receive from the VIN number. Does that mean that this is not taken into consideration? For the most part yes, if the company does ask, then they could be taking this into consideration which is something to remember when looking for auto insurance.

 The made, model, and year of the car are the factors that are taken into consideration, as well as the number of car doors that this car has. Those that are looking to find a car that is going to be the cheapest to ensure are going to find that a sedan with four doors that is an older model is going to be the cheapest that the person can ensure. Right along with this is the minivan that is fairly cheap to ensure no matter what year it is. The reason for this is the fact that these cars are viewed as something that are going to be driven without tons of speed since they read not equipped to go too fast. On the other hand, the sporty cars that are brand new are going to be the most expensive to ensure simply because there is little car there, so when these cars get into an accident, usually this means having to replace the entire car.

 For those that are wanting to find a car that is going to be cheaper with the insurance that they pay, they can ask for a scenario of a certain car on their policy and find out how much they would pay. Most insurance companies can do this for the person fairly easily or their website will allow the person to do this on their own via the links that are included. It is a good idea for people to do this as they are going to find that the car insurance is something that takes a good chunk out of their paycheck and they want to be prepared for what their insurance is going to cost them with this new car. Click here for a quick Quote