What is Gap Insurance and do I need it in Ocala?

 

A: Gap insurance, sometimes called "totaled insurance," provides valuable protection if your car is worth less than the amount of your bank loan or lease pay off. This is called being "upside down" or "underwater" on a loan. 

Anyone who purchased or leased a new or nearly new car with a loan for close to the full purchase price, or less than 20% to 50%  down, and drove it off the car lot is at risk, and  should consider purchasing Gap Insurance.

With resale values plummeting and volatility in the market-depending on the vehicle you purchased, even if you did put a substantial amount down- you could still be "upside down" on your loan.  This is because you will only be reimbursed for your vehicle's fair market value. 

Here is an example:   You buy or lease a newer model car or truck for $25,000. Several months later, or the moment you drive it off the car lot, it is totaled (or stolen). Your insurance company will only pay you what they decide the vehicle is currently worth,  not necessarily what you owe on the car. In this case, the reimbursement could be $20,000, leaving you to pay the remaining $5,000 out of pocket (if you did not have gap insurance) to the finance company or the lease company. 

My recommendation as an Ocala Accident Attorney:  If you are not sure where you stand, check out what cars of your year, make, and model are selling for in today's market. Then compare that amount to what you owe on your vehicle.  Insurer's typically pay somewhere between the trade in value and what you could get in a private sale.

The good news is that Gap insurance is not terribly expensive.

For more of my insurance suggestions:  Insurance coverage laws recommendations.





We at the Law Office of Jeffrey Meldon and Associates strongly believe that public education is the first step in the prevention of an accident or in the recovery from one.  

We are experienced personal injury attorneys, trial lawyers, negotiators, litigators, paralegals, and staff that have been proudly working to get accident victims the justice they deserve for over 30 years in Gainesville, Ocala, Lake City, Inverness, and the rest of North Central Florida and North Florida. Accidents involving a car crash, truck wreck, and motorcycle, bicycle, or pedestrian accidents, dog bites, slip and falls and medical malpractice are all included in our practice.

Based on Jeffrey Meldon's, founder of The Law Office of Jeffrey Meldon & Associates, over 30 years of helping accident victims get justice and a fair shake from the insurance companies, he has written the consumer guide book, Seven Mistakes That Can Wreck Your Florida Accident Case.  You can request your free, no obligation copy right now, or contact our office for your complimentary copy sent to you today.

Contact the Law Office of Jeffrey Meldon at (800) 373-8000 or (352) 373-8000 immediately if you have been involved in a serious auto, truck, or motorcycle accident.  We are in your community, have the experience and resources required to work towards obtaining a fair settlement for you - we are here to help you.

We proudly handle accidents that occur on all roads and in the areas including: I-75, I-10, I-95, U.S. Route 301, U.S. Route 441, State Road 40, State Road 26, State Road 24, Archer Road, Main St, and University Avenue.  Our law firm has  been representing accident victims in Gainesville, Ocala, Lake City, Inverness, Palatka, Crystal River, Daytona Beach, Interlachen, Spring Hill, Dunnellon, Bunnell, Live Oak, Starke, Jasper, Cross City, Perry, Trenton,  Leesberg,  Lake Butler,  Tavares, Chiefland, Bronson, Brooksville, The Villages and the counties of Alachua, Marion, Columbia, Citrus, Volusia, Sumter, Levy, Lake, Bradford, Flagler, Hamilton, Dixie, Gilchrist, Union, Hernando, Suwannee, Union, and Putnam, and, since 1971!