If you have purchased a car in Georgia, you were probably asked about “gap insurance” or “gap coverage”. Gap Insurance in Georgia is an optional type of insurance policy that protects you when you are in an accident, your vehicle is considered “totaled” (basically too costly to repair) and you owe more than the insurance allows for the replacement of your vehicle. It can also come into play if your car is stolen. It basically pays the gap between the depreciated value of your car and what is still owed on the car.
How it Works
Gap insurance is a policy, like any other insurance policy. However, it only comes into effect in a specific instance; your auto needs to be replaced and you owe more than the insurance can pay out. Here is a common example:
Ted is involved in a car accident. His vehicle is relatively new and he still makes loan payments. The insurance company that is working the claim determines that Ted’s car is only worth $21,000 yet he still owes close to $40,000 for it. This means that if Ted has no gap insurance in Georgia, he will still owe for the value of his lost car and not have anything to put down for a new one. Doesn’t seem fair, right? This is how the insurance company solves that problem for Ted.
If Ted has gap insurance, it will fill the “gap” for him, paying the difference between the value of his totaled car and what he owes.
As with all insurance policies, there are some limitations. If you have been in an accident and have questions, it’s best to seek out an experienced attorney who can address your insurance concerns. After you settle (or accept the check) from the insurance company, it’s typically too late.
Need Professional Assistance or Have Questions?
If you have questions or need a case review involving your accident, injuries sustained or the replacement of your vehicle, contact us. Ty Wilson approaches each case individually. He provides personal attention to the entire case, not just the beginning or the end. If you want someone who can see your case through from start to finish, Ty has that experience, knowledge and the determination.
