Auto Insurance Rates Anchorage Alaska AK

 

October 15, 2008 by visitor · Leave a Comment
Filed under: Auto insurance leads 

Reader’s Question:

I was surprised to find out that there is actually a whole gamut of auto insurance types available in Anchorage Alaska AK. They seem to make sense, most of them at least. I am having a hard time understanding gap insurance. Can you please explain it to me in simple terms? Thank you.

Jerry

Anchorage, AK

Yes, Jerry, I’ll be glad to try and explain this matter in simple terms. The value of gap coverage or gap insurance is not as easily appreciated as the other types of auto insurance. This is perhaps why many people are not too keen on getting gap coverage. But it can actually come in very handy especially in the early years of owning your car through car loans or when you are driving a leased car.

It can probably be best explained by using an example so please allow me to use one in this case. Say you have purchased your car through a 5-year auto loan in -Anchorage Alaska AK. On the second year of owning your car, you still owe 80% of your car’s value. Say even further, that it was damaged, and unfortunately beyond repair. In which case, your regular comprehensive auto insurance will pay for the amount of the car valuated prior to the wreck. Since you have already used the car, it will be devaluated, and the auto insurance will pay for this amount, which will not be equal to 80% of its original cost, or your remaining balance. Gap insurance will pay for the difference between your loan and the amount paid by your auto insurance. You see in this case, gap insurance makes all the difference in the world, correct? Similarly, if you have totaled a car while you were leasing it, you will be required to shoulder the gap costs. If you have gap insurance, you have nothing to worry about.

To get an idea of how much gap coverage costs and other auto insurance policy, you can enter your Anchorage Alaska AK zip code on the space on this page. Hope that I have somehow helped clear your mind.

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