This month it is all about insurance here on the VIP European Auto blog. Auto insurance is a large, wide-ranging topic. So far, we have discussed the major types of coverages you can carry on your policy, and we have detailed a few of the more popular insurance add-ons. Rounding out our education on auto-insurance, today we are going to dip back into the world of insurance add-ons and learn about more ways you can customize your insurance policy to your specific needs. Let’s do it!
Gap Insurance – While gap insurance is technically considered an insurance add-on, many people consider it a necessity. Insurance is designed to protect you in worst-case scenarios. Gap insurance is designed to help you in truly worst-case scenarios. Imagine a situation in which you owe more for your car than your car is currently worth. Now imagine you get in an accident, and it is totaled. Your insurance policy pays you for the value of the car. Unfortunately, you still owe more than what they pay you!! Now you owe money for a car that doesn’t even exist anymore.
Gap insurance protects you in this situation. It covers the difference between what you owe, and what the car is currently worth.
Vanishing Deductibles – The vanishing deductible is a new type of policy add-on that many insurance providers are beginning to offer. Essentially, it works like this. When you sign the policy, you have a deductible of $500. If you go a year without an accident, your deductible will be reduced by a set amount. This will continue for every year you go without an accident until the deductible value reaches zero. Sounds almost too good to be true, right? Unless you have a sterling driving record, you may have trouble finding a provider who will offer you vanishing deductibles.