What Time Frame is Allowed to Buy Gap Insurance?
Question: What Time Frame is Allowed to Buy Gap Insurance?
Gap insurance can be purchased from a couple of different sources. The time frame in which you can purchase gap insurance may vary, but only slightly. It’s a good idea to make your decision on whether or not you need gap insurance as soon as possible.
Answer: Decide where you are purchasing gap insurance to establish the time frame allowed in making the purchase.
Lender = At the Time of Purchase
Buying gap right at the time of purchase is ideal. Getting it through the lender is not always such a good deal. Often you will find gap coverage cheaper when you buy it through your car insurance carrier. The best thing your lender is offering is convenience. However, mentioning gap insurance to your insurance agent when putting car insurance on your new vehicle really is not difficult.
Car Insurance = Within 30 Days of Initial Purchase
If you purchase gap coverage through your car insurance, make sure you keep the coverage if you switch insurance carriers. Most insurance carriers will honor the coverage if it is on your prior policy. This is the one time most insurance companies will offer gap coverage past the 30-day time frame.
Gap insurance through your car insurance carrier is often reasonably priced. A couple of dollars a month can be a huge blessing if you are ever in a major car accident which totals your vehicle.
Waiting the thirty days could be a very bad decision.
Loan/Lease Payoff = Any Tiime
It is similar to gap insurance, however, loan/lease payoff has some limitations. Loan/Lease payoff can potentially be purchased at any time. You will need to check with your insurance carrier to see if it’s offered and its availability.
Best Time to Purchase Gap Insurance
The best time to purchase gap insurance is right when you purchase your vehicle, whether it is from a lender or your car insurance. Unfortunately, accidents can happen within the first 30 days of purchase. This potentially makes the time frame critical for having the coverage. Take the time to consider gap insurance and finalize the purchase without procrastinating.