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If you are familiar with the concept of" market value "," You know that once your new car the car very much, it writes a value of up to twenty percent. What you may not know is that if your new car is stolen or in total within the first year that you have, you are still not too late to pay a large portion of the loan, even if you have comprehensive car insurance. Auto "Gap" insurance, originally known as "guaranteed asset protection" insurance, to insure the difference between what your insurer says the car is worth (the market) and how much you owe it to ..

There are many situations, the purchase of car gap insurance. It is often necessary, in addition to a lease, the leasing company must be assured, should their vehicle be stolen or involved in an accident. They also want to have if you are a new vehicle, especially one that the risk of theft. Coincidentally, the most popular cars in a thief's eyes are also the most popular models sold. If thieves steal your car, even if it is the night you, your insurance will pay only for the value of the car, and you are paying for a loan that you do not enjoy.

Although many dealers say, you can only purchase gap insurance through them at the time of purchase, in fact, you can relax in gap insurance anytime within the first twelve months after purchase. Obviously, the longer you wait to get that cause you less for it. After the first few years that you owned your car, you no longer need gap insurance, because the car is the real value and the amount of the loan that remains is about the same.

The good thing about gap insurance is, how reasonable it is to acquire. With only a few dollars a month, he could have the budget of most new car owners. What keeps people from buying gap insurance is usually not the cost of care, but their relative ignorance that still exists. Loan companies will not tell you about it nor will car dealers. They are guaranteed their money regardless. And if they offer gap insurance at the time that you buy your car, you can often have a better rate on your own.

One of the reasons car buyers are not insurance gap is that it is not available in all states. In fact, it is not even by some insurance companies. Connecticut, Louisiana, Maine, Nebraska, New Hampshire, New Mexico, New York, Virginia and Washington, that no gap insurance, although drivers in those states can petition the state Insurance Department to the legislature, which is available. Even those who now have an auto policy through a company that no gap in coverage may request that their carrier add gap insurance as an option.

If you have an older car and do not anticipate buying a new anytime soon, it is likely that you never know what gap insurance. But for those of you who always planning for a new vehicle that may be the financing, gap insurance can be a vital - and affordable - alternative to the payment of out-of-pocket for an accident or theft is not your fault.

Tristan Andrews is a writer for California car insurance.