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Gap Car Insurance New York NY

Reader’s Question:

I know that I would need to pay extra for gap insurance for a car that I will loan here in New York. Once I get the new car, is it automatic that it already has gap insurance coverage or do I have to purchase it from my car insurance provider?

Ace

Bronx, NY

A lot of car loan contracts already have gap insurance coverage but need you to be in complete conformity with the loan so that the gap insurance coverage would pay out. Majority of gap insurance policies that are included in a loan contract need you to keep on making monthly payments until the gap payment is completed. If you will loan a car from a bank, they likely don’t have a contract that gives you an automatic coverage for gap insurance. A lot of car insurance companies offer gap insurance but some big companies don’t.

If you loan a car and would like to buy gap insurance from an insurance company, please note that most insurers only offer gap insurance for those who have purchased brand-new, untitled vehicles and those who already have collision and comprehensive coverage. So if the gap insurance is not included in the finance contract, it is suggested that you buy this coverage when you initially buy insurance for the new car in New York, since this is the time when the gap is the biggest. Other car insurers would let you buy gap insurance up to 11 months after buying your vehicle, or if the vehicle is in the model year in which the insurance is bought.

Tags: car insurance, gap insurance