A driver in Granite City totals their car in an accident. The vehicle is a complete loss, no question about it. But there’s still eighteen months left on the loan, and the insurance check that arrives doesn’t come close to covering what’s still owed. This scenario plays out more often than most drivers expect, and Maryland Moats Lexow Insurance fields this exact question regularly.<\/p>\n
When a financed vehicle is totaled, your auto insurance pays out based on the car’s actual cash value at the time of the loss, essentially what it was worth on the used market that day. That number has nothing to do with your remaining loan balance.<\/p>\n
New vehicles depreciate quickly, often losing a significant percentage of their value within the first year. If you financed with a small down payment or a longer loan term, it’s entirely possible to owe more than the car is worth for a good chunk of the loan, sometimes for years.<\/p>\n
Guaranteed asset protection, commonly called GAP insurance, is designed specifically to cover that difference between what you owe and what the car was actually worth. It’s a relatively small addition to a policy that can prevent a genuinely painful financial situation.<\/p>\n
If you financed a vehicle recently, especially with a small down payment, it’s worth a quick conversation about whether GAP coverage makes sense for your situation. Maryland Moats Lexow Insurance helps drivers throughout Granite City, IL figure out whether this coverage fits their loan and vehicle. Visit our auto insurance page<\/a> or call 618-876-1705.<\/p>\n","protected":false},"excerpt":{"rendered":" A driver in Granite City totals their car in an accident. The vehicle is a complete loss, no question about it. But there’s still eighteen months left on the loan, and the insurance check that arrives doesn’t come close to covering what’s still owed. This scenario plays out more often than most drivers expect, and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[18,14,13],"class_list":["post-82","post","type-post","status-publish","format-standard","hentry","category-auto-insurance","tag-auto-insurance","tag-granite-city","tag-maryland-moats-lexow-insurance"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t