When you are in the market for a new car, there are arrays of decisions you will need to make. One of which involves deciding between the different insurance policies and warranties. We have all heard the saying that your car losses half of its value the second it is driven off the lot, but who really knows exactly what this means? When it comes to purchasing a new car of particular value, there are wide ranges of gaps that must be accounted for.
For example, if you finance a car at $25,000, you will be faced with $400 car payments for the next four to six years to pay it off. However, within a week of enjoying your new ride you are involved in a serious accident. Since the damages will likely exceed the amount you owe on your loan, this can leave you with a gap in coverage. The severity of this incident is heightened if you total your brand new car. Since you still owe $24,600 on your car with only having the chance to pay one monthly payment, the damages totaling $25,000 can leave you in financial harm. Yet, if you were to obtain gap insurance at the time of purchasing your new car, this coverage would pay the difference plus your deductible.
Therefore, if you are considering inviting a brand new ride into your garage, it is highly recommended that you opt for gap insurance to protect your investment. Accidents are always a possibility, no matter how new your car may be.
Serving Davis, Sacramento, and surrounding areas, contact Purves & Associates Insurance Services for all of your California auto insurance needs. We will go above and beyond to provide your new ride with unparalleled protection.