Understanding Gap Insurance: Why It's Essential If Your Car Gets Totaled

Published on July 2, 2024

If you’re facing the aftermath of a car accident and are dealing with gap insurance, contact us at Ariel Law Group. Our extensive experience and dedication to client satisfaction make us the right choice to handle your case effectively. I'm Frank Ariel, founder of Ariel Law Group, with over 32 years of experience as an attorney. I've successfully completed thousands of accident and injury cases, been recognized by the National Trial Lawyers Top 100, and received hundreds of happy, satisfied client reviews. In this video, I’ll explain the importance of gap insurance and why it’s essential if your car gets totaled. Transcript: Gap insurance. What is it, and why is it imperative for everyone whose car is totaled in a car accident to have it? Hi, my name is Frank Ariel, the founder of Ariel Law Group, with over 32 years of experience as an attorney, successfully completing thousands of accident and injury cases, recognized by the National Trial Lawyers Top 100, and having hundreds of happy, satisfied online client reviews.

What Is Gap Insurance?

So, what is gap insurance? Just like the name suggests, it bridges the gap between two values: one, the actual cash value or the market value of your car, and two, what you owe to the finance company. And those two values may not be the same. You see, sometimes because of market conditions, the value of your car may have taken a nosedive, or because of bad credit, your interest rates may be higher. So now you owe more money to the finance company than what the insurance company is actually going to pay you. Now you're in a pickle. Not only do you not have a car, you're upside down with the finance company, your credit is going to be ruined.

Using Gap Insurance When Your Vehicle is Totaled

That is where gap insurance is golden. You're not going to be upside down with the finance company, your credit is not going to be ruined, and you're going to have the peace of mind for a smooth transition into a new car.

Car Accident Lawyer in Los Angeles

If you've been involved in a car accident where your car was totaled, you deserve that peace of mind. You must consult with an attorney who knows what he's doing and who cares for you. Give us a call. We're here to help.