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Getting gap insurance while purchasing a car is certainly a great idea for a buyer with poor credit and if less than twenty percent down payment is made. This type of insurance provides valuable protection in certain situations, particularly for the car buyers who have a tight budget and bad credit. Valley Auto Loans is a trusted online platform for the poor credit car buyers and our service has helped many such borrowers avail safe and easy car loan facility. We also have a highly active blog sharing useful information to help bad credit borrowers make the best financial decisions.
Though car gap insurance is useful, it is not at all a mandatory requirement to qualify for an auto loan with sub-prime dealers. Do not trust dealers who try to sell their insurance plans stating that it is a mandatory requirement. Always remember that your car is a property of the lender till the last payment has been made. Moreover, only the corresponding cash value will be paid by your regular car insurance. If any accident takes place during the period when the car is being financed, and it does not amount to a total loss, full coverage insurance covers all damage and repair. However, only the current cash value is paid, if there is a total loss of the car. Depending on the time of occurrence, there can be a difference of thousands of dollars between the insurance payout and the loan payoff amount. Under these circumstances, it is required to continue payments until the entire balance is completely paid off. However, if you have gap insurance, the difference between the balance loan amount and the insurance settlement would be paid by the insurance company.
What does Gap Insurance Cover and When Is It Useful?
Gap insurance can be an extremely useful purchase if your loan term extends beyond 48 months or if you have made a down payment of less than 20%. You may also consider purchasing this type of insurance if you plan to drive 15,000 miles or more per year. Gap insurance policies are offered these days by most of the car insurance companies, and therefore, do not forget to look at different offers before buying your gap insurance policy.
Valley Auto Loans and Gap Insurance
Gap Insurance
Over the years, we have seen many bad credit auto loan customers suffer from the above mentioned problems due to the lack of gap insurance. At Valley Auto Loans, our team of finance professionals is dedicated to help bad credit auto loan customers cope up with their financial constraints. Do not forget to check out our website today for easy to avail car loans regardless of your credit history.
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