Gap insurance is a type of coverage that helps protect car owners in the event that their vehicle is totaled or stolen. In Florida, gap insurance may be especially useful for drivers who have financed their vehicle and have a high-interest loan, as it can help cover the difference between the amount they owe on the loan and the value of the car.
Here is a general outline of gap insurance in Florida:
What is gap insurance?
Gap insurance is a type of coverage that helps protect car owners in the event that their vehicle is totaled or stolen.
It covers the difference between the amount the owner owes on the loan and the value of the car.
Who needs gap insurance in Florida?
Drivers who have financed their vehicle and have a high-interest loan may benefit from gap insurance.
Drivers who are at risk of owing more on their car loan than their car is worth may also want to consider gap insurance.
How does gap insurance work in Florida?
If a car is totaled or stolen, the owner’s auto insurance policy will typically only pay out the current value of the car.
Gap insurance helps cover the difference between the value of the car and the amount the owner owes on the loan.
This can help protect the owner from having to pay out of pocket to cover the remaining balance on the loan.
Where can I get gap insurance in Florida?
Gap insurance is typically offered by auto dealerships, insurance companies, and financial institutions.
It is important to shop around and compare quotes from multiple providers to find the best coverage and price.
Benefits Of Gap Insurance
Gap insurance helps to cover the difference between the amount that you owe on a financed vehicle and the amount that the vehicle is worth at the time of a total loss.
If you have a total loss and your insurance company only pays out the actual cash value of the vehicle, gap insurance can help to make up the difference so that you do not have to pay out of pocket.
Gap insurance can provide peace of mind, knowing that you are protected in the event of a total loss.
It can also help to protect your credit score, as defaulting on a car loan can negatively impact your credit rating.
Gap insurance is often required by lenders if you are financing a vehicle and have a down payment of less than 20%.