Gap Insurance in California

All You Need To Know About Gap Insurance

Gap insurance in California, an excellent coverage plan designed to help new car owners, hardly gets the amount of attention or appreciation it deserves. The reason behind that is the fact that it is a misunderstood concept. Here’s why and how gap insurance can be severely beneficial.


What is gap insurance?

The purpose of gap insurance lies in its name itself. It is designed to fill the gap or bracket of the amount between what insurance agencies usually pay out for totaled cars and what they actually owe. For instance, an insurance company pays off $100 whereas the total cost of repair or replacement of the totaled vehicle may be $150. This gap in the amount is covered by gap insurance. In such a situation, a person who has affordable car insurance in California will be helped a lot with that additional coverage.

Why is gap insurance in California so advantageous?

The advantages of having gap insurance are plenty. Firstly, since cars depreciate in value at a rapid rate, only in a matter of months, the car owners could be facing a financial trouble if they end being involved in a serious accident before their vehicle is even paid off. The worst-case scenario of not having gap insurance is – a new car owner finances a vehicle. Then he or she ends up damaging the vehicle in just a week. The car owner is now burdened with an entire loan to pay off. Even the best auto insurance agency in California will not be able to help the car owner if he or she does not have gap insurance. Some other advantages of gap insurance are –

  • Gap insurance regularly consists of clauses on theft or vandalism, which can benefit in safeguarding an investment in a new four-wheeler. How to attain this advantage – Look up several gap auto insurance quotes, analyze them in a detailed manner. Find out how a gap insurance “rider” suits into the existing crash, theft, and overall insurance package setup.
  • GAP car insurance is separate from standard auto insurance. Gap insurance in California usually covers the worst-case scenarios, especially when the car owner is found struggling to cover the difference in the fair market price that the insurance agency offers and the actual value of the vehicle.
  • A leased luxury vehicle or a truck used for business purposes may be worth more than what the insurer pays off in case there is a claim. Value fluctuations regularly play a part in deciding claims, and several insurers find methods to lessen their accountability on standard liability claims. GAP insurance coupled with a compact understanding of the price that a car owner is required to protect can completely eliminate the unnecessary process of hassling and negotiating with insurance agents after the filing of a claim. Safeguarding a lease helps car owners in the process of protecting themselves when they are actively owning a car that is valued more than what they can afford as per the market rate.

Gap insurance in California is essential for new car owners especially those who are making very less or no down payment on their loans.

Getting the best insurance rates- Promax Insurance Agency

Dedicated to providing the best policies consisting gap insurance in California, Promax Insurance Agency has become a strong associate for all of its clients and also a significant name in the insurance business. Promax Insurance offers the best rates in the market. Promax works with many major carriers such as Mercury Insurance, MetLife, Century-National etc. to provide the affordable auto insurance quotes for its customers.

They are currently operating in the following cities and counties –  Aliso Viejo, Anaheim, Brea, Buena Park, Cerritos, Chino, Costa Mesa, Corona, Cypress, Dana Point, Fountain Valley, Fullerton, Fontana, Garden Grove, Huntington Beach, Irvine, La Habra, La Palma, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, Long Beach, Los Alamitos, Mission Viejo, Newport Beach, Orange, Placentia, Pomona, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, Yorba Linda, Los Angeles, Riverside, Orange County, San Bernardino, San Diego, Sacramento, Sunnyvale, Santa Barbara, Santa Clara, San Luis Obispo, Fresno, Monterey, Whittier, Norwalk and Southern California.