Usually when one goes to buy a car the dealer will ask you who you are using for your car insurance. Typically this is not the case with gap insurance. Most dealers "package" the gap insurance right in with your new car purchase or lease. But, is this a good idea and is this the only way to get gap insurance?
Getting gap insurance through the car dealership is not a bad idea, if you understand how gap insurance works and you are working with a dealership who is knowledgeable about gap insurance. If your dealership does not understand the gap insurance policy then they won't be able to answer your questions. However, if you are working with a reputable dealership that you trust, you have studied about how gap insurance works and you understand your gap insurance policy, then purchasing gap insurance through the dealership is convenient and generally is not any more expensive than finding your own gap insurance policy.
If you decide not to use the dealership for your gap insurance needs, then you can find gap insurance policies online. You may have to have this done before you purchase your car and especially before you lease your vehicle so the dealership can verify that you have purchased a gap insurance policy. Finding gap insurance online will probably not be a major cost savings, but since you will be working directly with an insurance company, they will be able to better serve you and help you understand what coverages you will have with gap insurance.
Before you purchase gap insurance through your dealership or online, there are a few things you will want to understand first:
1. Always check first with your insurance company to see if they already include gap insurance in your car insurance policy. There is no reason to purchase gap insurance if you already have the coverage.
2. Another place to check to see if gap insurance is already included is from the financing company. Some financing companies will cover any additional "gaps" in coverage if your car is totaled which would eliminate the need for gap insurance.
3. Make sure you need gap insurance. If you are putting a large amount down on your vehicle or if it is an older vehicle, you don't always need gap insurance.
4. And finally, it is important to remember that you can purchase gap insurance even after your car purchase. So, if you did not purchase it at the dealership you can still find a gap insurance company online or locally and take advantage of the benefits of a gap insurance policy.