Ted Lewicki

Most people are not familiar with gap insurance and why it is so important to have. You should consider purchasing gap insurance if you owe money on your vehicle so that in the event of an accident or theft, you will not have to continue paying on a vehicle you no longer have.

What is gap insurance?

Most people finance their new cars rather than paying cash for them. Gap insurance is a product offered by car dealers to ensure the vehicle is paid off in the event of theft or an accident resulting in a total loss (meaning the vehicle is not worth repairing). Gap insurance protects you from the obligation of continuing to make payments when the vehicle is no longer in your possession, leaving you free to purchase another car without having to pay off your previous car loan.

The value of a car quickly depreciates, beginning right when you drive the new car away from the dealership. Even if you make a large down payment, chances are that if you're in a serious accident or if your car is stolen, your insurance will not be sufficient to cover the balance owed on your car loan. You are responsible to cover any deficiency not covered by your insurance company. This is reason people purchase gap insurance, which covers the balance of the loan remaining after your insurance claim is processed.

Book Value:

You may think your down payment is sufficient to leave your loan balance at an amount less than the book value of your vehicle, but that depends on many different factors such as the length of your loan and how well the make and model of your car retains its value. Unlike your home, your vehicle will lose value over time no matter how well it is maintained. This means there is a good chance that you will owe a balance on the loan after your insurance claim has been processed unless you pay additional premiums for replacement cost or carry gap insurance.

Is Gap Insurance Worth the Cost?

Maybe you have been very lucky or you're an excellent driver who has never had an accident or your car has never been stolen. If this is the case, you've probably never considered purchasing gap insurance. Anything can happen that is beyond your control. Your car can be totaled if it is hit while sitting in a parking lot. If it happens to be in the wrong place at the wrong time, it can be stolen.

The cost of gap insurance is minimal when you consider the possibility of a total loss when you owe more than the book value of the vehicle. Once you have purchased your new car, there is no adding the gap insurance at a later time. Some dealers may allow a grace period or a certain time frame where the option of purchasing gap insurance is available, but it is easier to do before your contract is submitted to the bank.

How Gap Insurance Works:

When you purchase your new car, the salesperson should offer you gap insurance. If you experience an accident or theft, resulting in a total loss, the financial institution will handle the gap insurance claim as long as they have been notified that you carry the additional coverage. They will submit a claim to your gap insurance agent for the balance owed on the vehicle as soon as your auto insurance claim is paid.

Gap insurance does not provide cash to you to buy a new car, but it does pay off the vehicle you no longer have possession of. You will still need to purchase a new car, but at least you will not be obligated to pay off the loan on the vehicle you no longer drive.

How to get Gap Insurance:

Gap insurance is not generally purchased from your automobile insurance agent. In most cases, it is offered to you by the dealer when you purchase your vehicle. The amount of gap insurance you can purchase depends on the financial institution that finances the vehicle. It is generally added to your loan. Some dealers give you up to 30 days to purchase gap insurance if you should elect not to, and then change your mind after purchasing a new car.

When you buy your vehicle, the cost of gap insurance is based on the length of time you need it to cover the loan balance. The insurance is only for the time that you owe on a vehicle. If you pay off the car early, the lender may refund any unused portion of your premium.

If you should pay off your loan as agreed and do not need the gap insurance, the premium in not refundable. The policy expires when the loan is paid in full or if you should default on your payments and the car is repossessed.

Replacement Cost Insurance:

Some people choose to carry insurance with replacement cost. Be sure to check the price on this option as it is usually significantly more than the cost of gap insurance. Gap insurance is a short-term policy that benefits the lender only. Gap insurance pays only the amount due the lender after your auto insurance claim has been processed.

With replacement cost, you receive the replacement cost of a new vehicle less the amount due on your loan. The advantage is you will likely have money for a down payment on another vehicle, but the cost is higher than gap insurance and not all insurance companies offer this option.

In summary, gap insurance is essential if you are financing a new car. By purchasing gap insurance you protect yourself from having to make two car payments in the event of a total loss; one payment for the lost vehicle and one for the replacement vehicle you must purchase. You will generally have 30 days to change your mind if you do not purchase the coverage when you purchase the vehicle; however, some dealers do not offer this option. It is better to have the coverage and not need it than to need it and not have it, so be sure to make the right decision about gap insurance when you finance a new vehicle.

This article was written by Ted Lewicki, a Farmers Insurance Agent who represents several insurance companies. Ted has been in the insurance business for nearly 50 years; he has been a member of the Better Business Bureau with no reported complaints. He is always available when his customers have questions or concerns or they need to review their insurance coverage. http://www.a-oneinsurance.com/ services Oakland County, Michigan with many clients in Waterford, Pontiac, Rochester, Auburn Hills, West Bloomfield, Keego Harbor, Milford, White Lake, Walled Lake, Wixom and neighboring cities and communities.

Everyone should have some form of health insurance or basic medical coverage so they can see a doctor for yearly physicals or when they are ill. Private health insurance used to be something only the wealthy could afford, but there are companies that can make medical coverage a reality for you.

Shop Around and Ask Questions

Medical coverage varies from one company to another with many different plans available to serve your individual needs. Shop around, ask questions and take notes. At first, you may not know what to ask. As you visit with different insurance agents and hear about the different plans offered, you will become more familiar with the process and you will soon know just what you are looking for. Do not purchase a policy with the first company you make contact with; all insurance agents are trained to sell. The next one you visit will sound just as good. Maybe after shopping around, the first company will sound the best. This is why I recommend taking notes. You can always go back to the first company and ask questions.

With private health insurance, you will be responsible for paying the premiums rather that splitting the cost with an employer. Private health insurance is not as costly as it used to be with the competition among many local insurance companies. Be very selective when buying private health coverage; do not accept the cheapest package just because of the price. If it doesn't provide the care you need, you're just throwing money away. In this case, you're better off just paying the doctor bills! It's better to spend more money to get what you need than to spend less money and get nothing.

A good insurance agent will ask you the appropriate questions to determine the coverage you need. Maybe you just need something to cover regular doctor visits or coverage in the event of serious illness or injury. Some people need more; they may need long-term care in a nursing home or assisted living facility. No matter what your needs are, be sure to select the plan that suits your needs and your budget.

More Resources

The internet is a great place to do some research. You can take all the time you need to learn about the many different types of plans that are available. Many insurance companies have websites where you can "click here for a quote" to get an idea of how much the coverage is going to cost, with no obligation to do business with them.

Friends and family are another great resource for information. Ask them about their health coverage and who they do business with. Everyone likes to talk about what they know about. Most people are thrilled to be able to give advice; many try to force it on you even when you don't ask for it. Imagine what you can find out if you ask!

Your doctor will also be able to give you some recommendations. Find out what type of insurance your doctor accepts, especially if you're very comfortable with your doctor and have no desire to switch medical providers. If you get a great deal on coverage that works for you, it's no good if your doctor cannot accept it.

Your Insurance Agent

Another import issue when shopping for health insurance is an agent that you can easily communicate with. If there seems to be a personality conflict with an insurance agent, you may want to continue shopping around. No matter how good of a deal you're offered, what good is it if you have difficulty filing claims? A good insurance agent will continue to be available to answer your questions and concerns even after making the sale.

Put all you eggs in one basket?

Many people only deal with one insurance agent for all their insurance needs. Did you know that most auto or homeowners insurance agents also provide health insurance? Some insurance agents are financial advisors as well. A full service insurance agent is not a bad idea. Your insurance agent is sort of like your doctor. He knows all about your financial situation and your liability needs. Why shouldn't he also know about your health care needs? There is often a nice discount when you have multiple policies with one insurance company. If you like your automobile insurance agent or your homeowner's insurance agent and the company is good about taking care of you when you file a claim, this is probably the place to start with your shopping for private health insurance.

All types of insurance can be very expensive, but they can also be very reasonable. Be sure to ask around and find a plan that suits your needs and your budget. Make sure you can effectively communicate with your insurance agent should you have questions or concerns. It is also a good idea to schedule an annual appointment with your insurance agent to review your policy to be sure your coverage is adequate.

This article was written by Ted Lewicki, a Farmers Insurance Agent who represents several insurance companies. Ted has been in the insurance business for nearly 50 years; he has been a member of the Better Business Bureau with no reported complaints. He is always available when his customers have questions or concerns or they need to review their insurance coverage. http://www.a-oneinsurance.com/ services Oakland County, Michigan with many clients in Waterford, Pontiac, Rochester, Auburn Hills, West Bloomfield, Keego Harbor, Milford, White Lake, Walled Lake, Wixom and neighboring cities and communities.

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Auto insurance is required by law for anyone who purchases a car in any state in the US. Anyone who is caught driving a vehicle without auto insurance faces heavy fines and possible jail time. In addition, your car can be seized and impounded. The total in fines, impound fees and bail to get out of jail is far more than the cost of the insurance. Another good reason for auto insurance is to cover you if you are involved in an accident, causing damages and injury to someone. If you are adequately covered, and you get sued for millions of dollars, the insurance company will have attorneys to represent you and handle the claim. Otherwise, you stand a chance to lose everything you own, and more! So, if you're going to drive, be sure to have insurance!

The main reason the law requires you to have auto insurance is to cover damages and injury to others as a result of a traffic accident. This is very important as the damages and medical expenses can be very expensive. If you cause an accident that injures or kills someone, are you able to write a check to compensate them for their loss? Most likely, the answer is "no way!"

There are several types of auto insurance coverage to choose from, depending on the value of your vehicle and how much you face losing in the event of a serious accident resulting in a lawsuit. You may choose the bare minimum, PLPD (Personal Liability and Property Damage) coverage, which covers the injured party, but not you. If your car has no real cash value, then this may be the coverage to choose. If you drive a very expensive car, or the car is financed, you will be required to carry full coverage, which will cover the balance owed on the vehicle should it be totaled in an accident. There are also policies that cover theft of your vehicle.

The cost of the insurance depends on the type of policy you choose, the make and model of your vehicle, its value, the area where the car is parked at night, your driving record and how many miles you drive annually, to name a few. There are many factors used to calculate automobile insurance rates. Different companies have different rates, so it is important to get several quotes before purchasing automobile insurance. It is also important to be sure the company you choose to work with has a good reputation for handling claims. Most people get referrals from friends and family who already have a relationship with an insurance agent. A good insurance agent will explain all options and ask the appropriate questions about you to be sure you are adequately covered.

If you're in the market to purchase a car, be sure to visit your insurance agent first, to be sure the cost fits your budget. Studies have shown that some vehicles are more commonly stolen than others. Some vehicles are rated safer than others in the event of an accident. Check the "crash test" ratings on the models you have in mind and see your insurance agent for more information and advice. In any event, buckle up and maintain proper automobile insurance now to avoid stiff penalties and fines, jail time, loss of your driver's license and a nightmare down the road!

This article was written by Ted Lewicki, a Farmers Insurance agent located in Waterford, Michigan. Ted has been an insurance agent for nearly 50 years. He has been a member of the Better Business Bureau with no reported complaints. Ted interviews his clients to learn just what type of policy they need so that they are adequately covered in the event of an unfortunate accident where they may be sued. http://www.a-oneinsurance.com/ services Oakland County, Michigan with many clients in Waterford, Pontiac, Rochester, Auburn Hills, West Bloomfield, Keego Harbor, Milford, White Lake, Walled Lake, Wixom and neighboring cities and communities.

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A-1 Insurance Agency in Waterford, Michigan has been in business for nearly 50 years, serving all insurance needs.

The Farmers Insurance Group of Companies was founded in 1928 when Farmers Insurance Exchange, an automobile insurer, was formed. As customer demand for additional insurance services increased, the Fire Insurance Exchange and Truck Insurance Exchange wee established for home and commercial insurance needs. Today, the Farmers Insurance Group of companies is one of the country's largest writers of both private passenger automobile and homeowners insurance.

Drive Insurance, a division of Progressive Insurance

Knowledgeable advice from an Insurance Specialist - Drive is sold by independent agents, licensed insurance professionals who take the time to understand your insurance needs and provide coverage options customized to protect you and your family.

Competitive Rates - Drive offers low rates for virtually any driver and any vehicle.

Superior Claims Service from Progressive - All Drive customers get claims service from Progressive, the company that pioneered 24/7 claims service and now offers a choice in how to have your car repaired.

Call Ted Lewicki at 248-674-0355 today or visit http://www.a-oneinsurance.com for your No Hassle Insurance Quote!

A-One Insurance represents a variety of insurance companies to cover your insurance needs.

Residential:

Automobile Insurance

Boat Insurance

RV Insurance

Motorcycle Insurance

Antique Auto and Boat Insurance

Homeowners Insurance

Health Insurance

Financial Management

Commercial:

Commercial Auto Insurance

Business Liability Insurance

Property Liability Insurance

Business Health Insurance

Worker's Compensation Insurance

Servicing all of Oakland County with many clients in West Bloomfield, Bloomfield Hills, Farmington, Farmington Hills, Waterford, Rochester, Auburn Hills, Lake Orion, Oxford, Holly, Ortonville and neighboring cities and communities.

Ted is committed to 100% customer satisfaction and assurance that his clients are adequately covered with liability insurance based on their individual lifestyle

Waterford, Michigan-First time home buyers in Waterford, Michigan appreciate the convenience of a mortgage broker who is also a Farmers Insurance Agent. Ted Lewicki, of A-1 Insurance, an independent insurance agency in Waterford, Michigan, provides a valuable service to his clients. Ted spoke at a workshop recently where he gave a lot of valuable information and advice to first time home buyers. He taught them all about applying for a mortgage and what they will need to bring to their mortgage broker to start the application. He also covered homeowners insurance, explaining in detail the purpose of homeowners insurance. "Homeowners insurance is a requirement if you have a mortgage on your home. There must be enough coverage in the event of a loss to cover the mortgage balance owed on the home, Ted explained. "You also need to have adequate liability insurance in the event of an accident causing injury to someone on your property."

"Ted Lewicki is the only person I know of in the state of Michigan who holds an Insurance License and a Mortgage Brokers License; in addition, he is an approved FHA Correspondent," said Mark Maupin, a local real estate investor. With nearly 50 years experience in the insurance business and over 20 years mortgage experience, Ted is proud to say he has never received a complaint about his performance. He customizes his service to fit the individual needs of his clients. "I'm so glad I attended the workshop when I did," said one of Ted's customers who recently purchased a home. "It was so convenient to be able to apply for my mortgage and insurance with the same agent. This way, I know I'm adequately covered."

Ted makes sure his customers have adequate insurance on their home to cover the debt, and he takes things a step further, making sure they have adequate liability insurance. Ted explained, "Someone who has more assets than the average consumer has more to lose if they are sued. They need more liability insurance coverage than the person who has a smaller home and fewer assets to protect."

Ted Lewicki, owner of A-1 Insurance Agency is located in Waterford, Michigan. For more information on his insurance products, visit http://www.a-oneinsurance.com/

Contact:

Ted Lewicki

A-1 Insurance Agency

3129 Dixie Hwy

Waterford, MI 48328

Phone: 248-674-0355

Email: info@a-oneinsurance.com

Website: http://www.a-oneinsurance.com/

Servicing all of Oakland County with many clients in West Bloomfield, Bloomfield Hills, Farmington, Farmington Hills, Waterford, Rochester, Auburn Hills, Lake Orion, Oxford, Holly, Ortonville and neighboring cities and communities.