Whether you primarily drive in Birmingham, AL or the surrounding rural areas, it’s crucial to have the right kind of auto insurance to meet your specific needs. There are several types of insurance you’ll want to consider. Gap insurance is a type of optional or add-on insurance that many people choose to have or are sometimes required to have.
What is Gap Auto Insurance?
Gap (Guaranteed Asset Protection) Insurance is considered optional insurance that would pay off the remainder or at least part of a car loan if the car is stolen or totaled in an accident. This coverage can help drivers pay the “gap” between what they still owe on a financed car and the actual cash value of the car. The cost of gap insurance would depend on a variety of factors. These would include your age, any previous auto insurance claims you may have had, and the actual cash value of your vehicle.
Do You Need Gap Insurance?
The following are a few different reasons a person might need gap insurance:
- You would definitely want to consider purchasing gap insurance if your car is worth less than the amount you still owe on the vehicle.
- Your loan provider may require you to have gap insurance.
- If you are leasing a car, the lease may stipulate that gap insurance is required.
Contact Birmingham Insurance Agency LLC
If you think you might need gap auto insurance, you’ll want to contact an agency to find out what type of policy will work best for you. It’s important to find a qualified agent serving the Birmingham area to make sure you are completely covered for any situation. Call Birmingham Insurance Agency LLC today in Birmingham, AL for more information.