Driving a car is often referred to as a privilege. This makes sense, as being able to get behind the wheel of a vehicle requires a certain degree of responsibility. For many, the decision to buy a car is the first real step that is taken to obtain a new level of freedom. When the time comes for you to buy a new ride, you are going to be faced with difficult choices. One of the most challenging will be choosing an insurance plan. Exploring your options with www.carinsurancecheap.net can be an excellent way for you to begin.

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Perhaps you have heard of this Gap coverage. Many drivers get a standard auto insurance policy to cover the cost of replacement parts or repairs if their vehicle is stolen or damaged, as many states mandate that is purchased. What exactly is Gap coverage? You have come to the right place to learn all about gap coverage and how having it can help you!

What is Gap Coverage?

Gap coverage is used mostly on small vehicles, such as trucks and cars, and heavy trucks. It can be used on new vehicles as well as used ones. Gap coverage covers the difference between what you still owe on your vehicle and the car’s worth. Gap coverage is sometimes referred to as “gap insurance” or “gap protection.” Gap is an appropriate name for this type of coverage not only because it covers a “gap,” but because GAP is an acronym for “Guaranteed Auto Protection,” what people are seeking when they purchase Gap coverage.

Gap Coverage Explained

Say you buy a car for $30,000 that you had taken out a loan for. A month later the car is totaled in a crash, but you still owe $30,000 on your loan. Because a new vehicle’s value quickly drops after purchase, the cash value of this once brand-new vehicle may only be $28,000. Your gap coverage, if you have elected to purchase it, will pay the difference, which would be $2,000 because that is what you get when you subtract the car’s current value, $28,000, from the $30,000 remaining loan balance.

If you are not paying a whole lot of money for your vehicle each month, as it will take you longer to pay the vehicle off that way then making bigger payments, then gap coverage may be a good idea to save you money in the long run if something happens to your vehicle while you are still trying to pay back the loan on it.

Who Gets Gap Coverage

Gap Coverage is designed for people who drive vehicles with a high history or depreciation rates, drivers who drive more than 15,000 miles annually (15,000 miles is what the average person drives), and drivers who lease. Sometimes lease contracts do actually require that one purchases Gap coverage.

One should also consider getting gap coverage if they do not have a lot of cash saved up that would cover the difference between the amount you still owe on your loan and the car’s actual cash value if it is totaled or stolen.

Purchasing the Gap Coverage

Buying from the dealership you get your vehicle from can provide you with a one-time charge that you will get out of the way for the part of the car’s life that it spends with you. You will want to be sure that the coverage you get provides types of loss like accident, theft and natural disaster–again, a dealership is your best bet for this.

The folks at a local car dealer, Patrick MINI in Schaumburg, IL, can provide you with more information on available Gap coverage, especially if you are thinking about purchasing a new or used MINI vehicle in the Chicago area.

Whenever a new concept car is released, particularly if it looks like it’s one of a kind, there’s always plenty of excitement from people in the motoring industry and petrolheads alike. This is certainly true of the new Renault Alpine, a mid-engined 400bhp sports car which has been unleashed on the Monaco Grand Prix circuit to demonstrate its prowess. Paying homage to Alpine, the former sports car manufacturer which was amalgamated into Renault in the 1970s, this car has set a lot of tongues wagging, wondering how much car insurance would cost if they were to buy one.

Before the brand was discontinued by Renault, Alpine’s motoring heritage was long and impressive. The A110, made during the 1960s-1970s, famously won the first ever World Rally Championship in 1973, while, not long after being taken over by Renault, they won the Le Mans race in 1978. Having been dropped in the 1990’s, the new Renault Alpine will be made available for sale, ideal for racing around a track.

Renault’s CEO, Carlos Tavares, claimed that this was their last chance to build an iconic sports car, while another member of the French manufacturer’s board said “If we don’t do it this time, we never will.”

The Alpine’s 400bhp V6 engine means that, when it finally hits showrooms, it will make a great thrill-a-minute ride for people who’ve always wanted to drive a great-looking sports car. As for the bodywork, its emphatic rear spoiler and metallic blue paintwork complete with orange trim makes it look the part.

This story from Cleveland.com highlights an important new trend in the auto insurance business, and it will likely affect you and your own car insurance rates in the future.

When Zshavina Meacher of Cleveland traded in her car for a new 2011 Chevy Malibu last summer, her insurance premium jumped to $510 every six months. Her insurer, Progressive Corp., asked her whether she wanted to cut her rate.

If Meacher agreed to install a device in her car that monitors how safely she drives and the results were good, her rates would go down. If the results weren’t so good, her rates would stay the same. She agreed.

During the first few weeks, the device told Meacher that she slammed on her brakes a lot. She stopped the hard braking.
In February, the 23-year-old’s insurance bill dropped by $120 per six months, or 24 percent.

Meacher is happy her rates went down. And Progressive is happy the risk of Meacher getting into an accident went down. Fewer claims will help keep Mayfield-based Progressive profitable.

The technology that makes this possible is called telematics, and you’re probably going to be hearing more about it as more car insurance companies start using it and more states start permitting it. Along with Progressive, State Farm, Allstate, Nationwide, Travelers and American Family are also trying it, though there are some patent disputes in play as Progressive tries to protect its innovation.

The key is that it works, as information about driving habits is more valuable to insurance companies than demographic information. Also, it’s not surprising that drivers will also be more careful if they know they are being monitored.

But it also raises all sorts of privacy concerns. When does health monitoring start? Do we want insurance companies knowing everything about us?

It is easy to understand why everyone needs auto insurance as insurance is there to protect you financially in case of an unforeseen accident. Thankfully, auto insurance usually covers any injuries and damages that are caused by an accident.

The hard part to understand is how to manage your auto insurance in an efficient manner while keeping up with rates and changes. Most of us do not have the time to sit down with our insurance agent once a week, or even once a month, to discuss better options for ourselves and our families. Yet finding the absolute best auto insurance, for one’s needs and also one’s budget, is imperative.

Usually one must have a minimum amount of liability insurance and provide proof of insurance before a car can be licensed. Be sure to check out the specific requirements of your home state concerning these issues, so that you will understand the law. Also, you must realize that often minimum coverage will not cover damages incurred from an auto accident. In these circumstances, the responsible driver must pay for any additional costs.

Now you can see why it is absolutely essential to find a good insurance company with agents that can tailor the right policy to your needs, and do it before you need it.

If all this seems over-whelming, remember that there are excellent agents out there and the great thing is that, with the right insurance, you can manage your insurance from your computer. Make sure to check out the top insurance carriers that have a web presence. Most of these carriers have websites that allow you to be actively involved in this very necessary part of life.

Do it and do it NOW.