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How does gap insurance work?

Gap Insurance – A Few Basics to Note

Consumers of all ages, especially those with cars, please pay attention closely as the following information may benefit you:

Did you know that, in the gruesome event that your auto gets totaled, or you can’t afford your skyrocketing costs to account for its depreciated value, gap insurance can help you? Here’s how it can work according to TBIG Insurance, Inc. in St. Petersburg, FL:

How does it work?

First of all, gap insurance is optional, so it’s considered secondary or supplemental insurance. Think of it as an add on, should you choose to take advantage of it. And we recommend you do. 

"Loan or lease gap coverage" is another name by which this type of insurance falls under, respectively. So it’s known by a variety of different names as we can see. The most common is "gap insurance" as we’ll call it here.

Furthermore, gap insurance does not replace your collision or other accident coverage that you may already hold with your current provider; that is not its intent either. Since it is supplemental, it will instead come alongside such coverage and further add to its benefits. You use the two forms of coverage, then, hand in hand. To add an example, let’s assume you just bought a $25,000 auto, brand new. But unfortunately, a recently covered collision has resulted in the car getting totaled. Then what? Well, let’s assume you still owe $20,000. Your collision coverage pays the lender $19,000. Gap covers the remaining $1,000. 

Contact us

TBIG Insurance, Inc., serving gorgeous St. Petersburg, FL, has the right solution for your needs if you wish to inquire further on your eligibility or status. Find out more today by contacting our offices for a quote. Our agents would love to answer any of your questions!