Closing the “Gap” With Gap Insurance

As a Maryland personal injury attorney and accident lawyer, I see countless people struggle when their car is totaled because of an accident. The solution: Gap Insurance. Here is a quick guide to help you purchase Maryland Gap Insurance.

A car depreciates soon after you inhale that new car smell. As soon as you drive off that lot, it’s not worth what you paid. If the car is totaled, your insurance company will only give you the fair market value of the vehicle. As a Maryland accident attorney, I know first hand how devastating a Maryland auto can be (even if no on was injured!). Many people are often stuck with paying the remainder to the lender (plus the deductible). Therefore, you may want to consider “gap” insurance.

Is Gap Insurance already included in my full coverage?

In some cases, Gap Insurance might be automatically added into your premium. If you are leasing your vehicle, it may be part of the lease. Ask your insurance company. Ask your leasing agent. You don’t want to buy it twice. If your insurance provider doesn’t offer Gap Insurance, don’t worry. You can always purchase it from another provider.

Should I buy Gap Insurance from my dealership?

Like anything else, shop around. Buying Gap Insurance from the dealer could cost you more, and you could end up paying interest on it. The best course of action is to start with your provider and then get quotes from other companies. Not every policy is the same and you should choose one that best fits your circumstances. Don’t let the dealer bully you into a bad deal.

Do I have to buy Gap Insurance?

No and it’s definitely not needed for older vehicles. But if your heart is set on that new car smell, Gap Insurance is the way to go. Alternately, you can increase your down payment. A down payment of 30% or even 20% would bridge the depreciation gap considerably. Getting the money together is another story and it might be much easier on your wallet if you get the insurance.

Involved in Maryland automobile accident and need help? Please give me a call for a no-cost, no obligation consultation. You may not even need a Maryland personal injury attorney. Talk to me BEFORE you sign any forms or talk to any insurance adjusters.