or used vehicle, add a "rider" to your policy or purchase a separate "rider.”
If you have Homeowners or Rental insurance, a "rider" might sound familiar. For a homeowner’s policy, if you own expensive items, like fine jewelry, you need to add a rider to your policy. The reason - Insurance Companies won't cover those types of items as part of a regular insurance policy.
So, you pay an extra $5 or $6 a month to have those items fully covered by the rider."
If anything ever happens to the jewelry, it gets replaced.
A rider for your car or truck is called GAP Insurance or GAP Protection. It's just like the rider for your Home - except it's only for cars, vans, trucks or suv’s.
It covers "What You Owe", not "What it's worth.”
It doesn't matter what the reason is - if it's ever totaled due to theft, fire, accident, flood, tornado, vandalism, hurricane, it's covered - and paid-in-full!
You can find protect yourself four different ways.
1. Put at least 20%-30% down on any new or used car purchase to erase any gap;
2. Purchase a "Rider" - AKA GAP Insurance from your Car Insurance Company or Bank;
3. Purchase Gap Insurance from another Insurance Company;
4. Buy Gap Insurance from the Dealership you're buying at.
Any one of these options is great way to protect yourself. Whether you're getting ready to purchase a new car or truck, or purchased a vehicle in the last 2 years or so, make sure the "gap" between what your vehicle is worth and what you owe is covered.
