Navigating Through Auto Insurance Options
The purchase of a new (or new to you) car involves a lot more than just finding the right car-it includes, among other things, finding Washington auto insurance. Each state varies in the types and amounts of insurance required.
What is Gap Insurance?
One type of auto insurance coverage you might want to consider while determining your coverage amounts and values is gap insurance. Redmond, Washington doesn't require this type of insurance and most Redmond insurance quotes will not include estimates for gap coverage, but it's still worth looking into.
Quite simply, gap insurance will cover the gap in what you owe on your loan and the actual market value should you get in an accident. Let's say for example you purchase a brand new car. As you drive it off the lot, the value of the car will depreciate and (unless you unknowingly bought a future collector item) will continue to do so, typically at a faster rate than you're paying off your loan. A year down the road, you total your car. Let's say you still owe $15,000 on the car, but the current market value is only $12,000. At this point, gap insurance becomes your best friend-instead of paying $3,000 on a loan for a car you no longer have, gap insurance kicks in and your new loan balance is now $0.
Do You Need Gap Insurance in Washington?
Because newer cars tend to depreciate at a faster rate than older ones, gap insurance is advisable if you buy a brand new car or one that's only a few years old. The average brand new car depreciates 20% when you drive it off the lot; without gap insurance, that really adds up in the event of an accident.
Finding Redmond Insurance Quotes
There are numerous Redmond insurance companies that offer gap insurance. Finding one requires a little research, but shouldn't be too difficult. A simple search of "Redmond insurance quotes" on a site like NetQuote.com can point you in the right direction. NetQuote.com takes the hassle out of researching and comparing Washington insurance quotes, so you can easily enter in your information, compare your Redmond insurance quotes, and be on your way.