At the moment you’ve got no car, but you’ve got big plans. You already know you can’t go forever without buying a car. The sooner you begin planning for your life as a driver, the better off you’ll be.
While you’re saving up and shopping around for that new car, it’s wise to protect yourself with non owner car insurance. This type of insurance insures that you are completely covered while driving another person’s car. Non owner insurance covers you for any damages you might cause to a person’s body or property when you are driving someone else’s car. It’s particularly important to have this kind of insurance when you have a variety of people who loan you their cars, because who knows what kind of insurance they have. By purchasing nonowner car insurance you can take full responsibility for yourself as a driver, and you won’t have to rely on other people’s insurance in the unfortunate event that you are involved in an automobile accident in one of their cars.
When you finally saved up all the dough to put a down payment on that brand-new car you’ve been eyeing, it’s a good idea to get yourself some gap insurance once you’ve made the purchase. Gap insurance goes above and beyond the standard property damage liability insurances. It is a well-known fact that a new car begins to appreciate the moment it’s driven off the parking lot. In practical terms, this means that for a period of time at the beginning of the loan you may end up owing more for the purchase of your car than your car is actually worth.
This is where gap car insurance comes in. If you get into a severe auto accident and total your car, you could wind up owing the lender more money than what your insurance company will pay for. Gap auto insurance ensures that you are not stuck with the remainder of the bill for the totaled car, as the gap insurance will pay off the difference between the value of your car and what you still owe on the loan.
You will definitely want to consider gap insurance if you are leasing a car or are trading in an existing car that you’re still paying off. In both of these situations, it’s common to end up “upside down” on your loan which can be a costly proposition indeed if you are unfortunate enough to total your car.
Both before and after you buy a new car, make sure you have all of your bases covered with non owner car insurance and gap insurance. Taking these 2 simple steps can save you a lot of hassle involving your friends and family and/or your new auto lender. As with most things in life, it’s best to be prepared — the peace of mind is always worth it.