Gap Car Insurance Tips – Can I Buy Gaping Coverage Without Paying More?
A “Gaspar” (or Gaspar’s Lawyer) is a person who obtains a special type of commercial vehicle that is leased and whose actual contract of hire is for a particular number of miles from the end of the lease period. The person leasing the vehicle may elect to extend the lease term, but this is not always required. In some cases, a spar will represent a new tenant who will pay all expenses for taxes, insurance, licensing, etc., and is responsible to the lessee for any damage that occurs during the leased amount of time. The lessee then becomes the owner of the vehicle and pays the appropriate taxes, insurance, etc.
What if I still owe on my vehicle after the gap? In most cases, the vehicle is still owned by the lender. But, he or she has the option of selling it to the lessee (the gaspar) or holding onto it until the lease/loan is completed and the vehicle is paid in full. If the borrower still owes after the gap, chances are good that the lender has the option of taking possession of the vehicle until the outstanding amount of the lease/loan is repaid. If that happens, the lender should first make sure that you have sufficient title insurance coverage.
What if I don’t have enough money for the down payment for my new car? Sometimes, the only source of money for a down payment on a leased or rented vehicle is through the leasing company. If this is the case with your situation, it’s a good idea to consult with the leasing company to see if you qualify for financing. Chances are good that they can offer you a no-money-down leasing option that meets your financial needs.
Can I get a gap insurance is a good idea if I don’t owe on my current car? Gap insurance is a great way to protect your investment while waiting for your lease/loan to become active (usually takes 2 months). This type of insurance protects the value of your lease or loan if you were to have an accident prior to the lease or loan being active. Gap insurance will pay off the outstanding balance of the vehicle that is not paid in full at the end of the lease/loan. It’s important to note that this type of insurance is only valid for the period that you have the lease or loan.
Is it possible to get both gap and no-money-down insurance? Yes, it is. In order to ensure that you get the best price out of your new car purchase, it’s wise to consult with a reputable insurance company that not only offers no-obligation quotes but also offers good deals on multiple-policy plans. Ask your new auto insurance company about gap and no-money-down plans.
Does gap or no-money-down insurance cover damages to my car if I owe on my current vehicle? Gap or no-money-down insurance is designed for people who owe on their new vehicle but do not own it. If you owe on a vehicle and do not yet own it, you will still be able to purchase a new vehicle with gap or no-money-down coverage. However, you must have the vehicle in your name in order to take advantage of a gap or no-money-down coverage.
Is there any advantage to buying a new car with gap or no-money-down coverage and then leasing it through an extended warranty program? Yes, there is. If you buy a new car with gap or no-money-down insurance and then lease it through an extended warranty plan, you can often save quite a bit of money by paying lower monthly payments. A portion of the down payment (the amount you initially paid to buy the car) will be applied to the loan. The remaining amount will be applied to the cost of the extended warranty. Because you have paid less for the car overall, you will typically find that your monthly payments are lower.
Gap coverage and no-fault insurance will not protect you against mechanical failures or collisions. These types of incidents are covered under your automobile insurance company’s collision and comprehensive coverage. For these types of accidents, you will need to contact your insurance company to find out if your gap coverage and no-fault policy will cover these types of damages. If they do not have coverage in this area, you may want to consider purchasing that type of coverage from an outside source.