Gap Auto Insurance in Kentucky?
Reader’s Question:
I need to sell my new car and I can’t afford the payments. I have gap insurance in Kentucky. Will it only help if the vehicle is totaled or stolen? Will the gap insurance help if we are trying to sell the car?
James
Newburg, KY
Yes, GAP insurance would only be of use if your car was found to be a total loss or if it was stolen and your primary insurance policy paid out actual cash value for the car. You cannot make use of your GAP insurance policy in Kentucky if you are upside-down on your loan and wish to sell the car.
Gap insurance is use to pay the difference between a covered insurance loss and the balance of your lease or loan. If you sell a car, this is not an insurance loss and therefore a claim with your Gap insurance company could not be placed.
New Car Insurance – Best Rates in Kentucky?
Q: If I have a new car, what kind of coverage do I need for my auto insurance policy?
A: As the driver of a new car, your responsibility for the well being of your car rises. Your financer, who you are paying for the car, doesn’t want to lose thousands of dollars because you wreck your car and then default on the payments, so a system is set up. If you want your new car, then you need to have collision, comprehensive, and gap insurance on your car insurance policy. If you don’t do this, your financer can take your car back.
You can make this cheaper by taking on even more responsibility, this time with your car insurance company. With the more money your insurance company has to pay when you file a claim, the more you will have to pay on your monthly premiums to make up for that. You can save here by raising your deductibles so that you have to pay out more before your insurance will kick in in the event of an accident.
Another way you can save a little bit of money is by paying your insurance all at once, for the entire six months to a year.
The BEST way to lower your rates is by raising your deductible amount to as high as you feel comfortable. This will have a drastic impact on your annual premiums.
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