Think of loan or lease gap insurance in New Jersey as your financial bridge.
When you buy a brand new car, you’ll probably get one standard feature you don’t want: immediate depreciation. Most new cars lose value the second they’re driven off the dealer’s lot – in some cases by several thousand dollars. If you financed the purchase of your car or lease it, this could put you in the situation of owing more than your car is worth.
That can become financially significant if your new car is damaged beyond repair in a covered accident soon after purchasing it. Having loan/lease coverage as part of your insurance can help you bridge this gap.
What Loan Or Lease Gap Insurance Is
Loan/lease coverage may help protect you from having to make loan or lease payments on a totaled car that you can’t drive anymore. While this coverage is not required by the state of New Jersey, it can be a smart purchase – especially for those whose car is new. Plus, some lenders may require that you purchase it and it’s been known to be automatically included in lease papers.
Carrying the Coverage
Eventually, the gap between what you owe on your car and its market value will diminish or disappear to the point where you won’t need this coverage anymore. Make sure to regularly keep track of these two figures. If you owe less than the car is worth, you may consider lowering your insurance bill by removing this coverage.
When Should Coverage on My New Vehicle Begin?
The short answer is before you drive your new car off the dealer’s lot. You’ll need to present proof of insurance when you purchase your vehicle, and you’ll want to ensure your car is covered from the moment you take possession. Your local agent or insurance professional will be able to add coverages and advise you on what other coverages you may need if you’re purchasing or leasing a new car.
Read information about full auto insurance coverage or find out more about uninsured and underinsured motorist coverage by clicking here. You can also learn more about comprehensive coverage and collision coverage.
Call 855-993-4470, get your free quote online, or find an agent to see how we can help you with loan or lease gap insurance in New Jersey. If you need additional information it can be found on our Contact Us page.
The information on this page is for educational purposes only and is not a statement of contract. Actual coverage is subject to the language of the policies as issued by your insurer. Certain restrictions and limitations may apply. Review your policy and consult with a licensed insurance professional to learn more about your coverage.