New car smell. It’s just one of the joys of buying a new car. Having a new ride, flawless interior and technology upgrades are just a few more.
But, there is a risk to buying a new car. The car may depreciate in value quickly. If you’re in an accident, your insurance coverage may not be enough for you to buy the same new car again. Or, you may owe more on your car loan than you’ll get from your insurance policy.
That’s where New Car Replacement Coverage and GAP Coverage come in. Here’s how they work. If you’re in an accident and your vehicle is determined to be a total loss:
You can buy New Car Replacement Coverage and Gap Coverage as add-ons to your auto insurance policy. (They are called endorsements.) You can add both New Car Replacement Coverage and Gap Coverage to your policy. Or, you can add New Car Replacement Coverage only to your policy. You can’t purchase Gap Coverage without buying New Car Replacement Coverage.
New Car Replacement Coverage: An example of New Car Replacement Coverage in action:
GAP Coverage: An example of GAP Coverage in action:
If you have GAP coverage, you can be reimbursed up to 110% to 120% of the value of the vehicle. In this case, your loan will be paid in full.
We have several companies that offer a New Car Replacement Coverage endorsement which provides full protection for the first year after you buy a new car. We also have companies that provide GAP Coverage protection.
EMERGE INSURANCE AGENCY
Cecil Williams -
Emerge Insurance Agency
5991 Chester Avenue, Suite 103
Jacksonville, FL 32217