You can check your current car insurance policy or the terms of your lease or loan agreement to see if you have provisional insurance. Insurers often offer this type of coverage as optional coverage or as an additional add-on at dealerships, so it's a good idea to find out if you already have term insurance before adding more coverage. To find out if you have provisional insurance, check your current car insurance policy and the terms of your loan or lease. Drivers can purchase emergency insurance through their insurance company as a supplement or separately through their car lender, so it's important to look for gap coverage in the list of coverages offered by both.
It's worth buying Gap insurance if the cost isn't significant and you might have to pay a large bill to pay for a car you no longer have. If you didn't buy supplemental insurance from your regular insurance company, you could have bought it from the dealer, bank, or credit union that provided you with a loan or lease. While car dealers may say that you have to have supplemental insurance or that you should buy it from them, you decide if you buy it and where you buy it. Most major auto insurance companies offer some type of interim insurance, although many have limitations on the vehicles they insure.
Dealers have several arguments to explain why supplementary insurance should be purchased with them, rather than with an insurance company. Gap insurance protects drivers who have financed or leased their cars and who owe more money for the car than it is worth. If your dealer, lender, or auto insurance company doesn't have provisional insurance, it probably won't be covered. Gap insurance is optional car insurance coverage that pays the difference between what you owe for your car and the amount you receive from your insurance company after a total loss.
Gap insurance can be a beneficial part of your car insurance coverage, but it only protects you in certain situations. If you're interested in buying only breach insurance, some car dealerships offer separate breach insurance coverage. Even if you have coverage, it's worth checking if you can get cheaper supplemental insurance elsewhere, as car dealers tend to charge more for it. Gap insurance, which covers the difference between the loan balance and the actual value of the car, can come from a dealer, bank, credit union, or auto insurance company.
If you need an insurance reimbursement for additional expenses because you are selling or redeeming the car, be sure to wait until the car no longer legally belongs to you before canceling your additional expense insurance insurance.