What is "Gap Insurance"?

A: The moment you drive a car off a sales lot, its value begins to depreciate.  If your car is totaled in a West Palm Beach car accident, your insurance will only pay you the current market value of your vehicle.  If you owe more than your vehicle is worth, you could end up having to pay the bank your entire insurance payment as well as the difference between the insurance check and what you owe.
 
Gap insurance protects you when your car is worth less than the amount of your bank loan or lease pay off. 
 
If you have taken out a loan for more than 50 percent of the purchase price of your car, you may want to consider purchasing gap insurance.  It is usually available as a low price addition to your regular insurance policy.
 
Do you have more questions about Florida auto insurance? Craig Goldenfarb, an auto accident lawyer in West Palm Beach, has written a free brochure to demystify Florida insurance requirements. Request your free copy of "What Types of Car Insurance Do I Need?" by clicking the link in the sidebar.