Many of us have a car, truck, or SUV, which means we have an insurance policy as well. That coverage is not as clear-cut as some drivers might expect, and our team at Broadbent insurance, Inc. will clear up any gray areas.
When you have car insurance in Newark, DE, the policy covers the actual cash value or depreciated value of the vehicle at the time of the claim. If your car was worth $10,000 and destroyed in an accident, your insurance policy would pay you that amount.
But let’s suppose you still owed $15,000 on the vehicle from your loan. You would still be expected to pay that $5,000 in the difference to the lender. That is where GAP (Guaranteed Asset Protection) insurance proves its value.
GAP car insurance helps you make up the gap between the value of your vehicle and what you owe. It covers damages that are insured by your provider, such as theft, fire, or accident. GAP coverage works with comprehensive and collision insurance, so you need to have this protection first before being eligible for GAP insurance.
Whenever you have a question about auto insurance, we are happy to provide the information you need at Broadbent Insurance, Inc.