subject: Protect Yourself with GAP Insurance Motorcycle [print this page] Protect Yourself with GAP Insurance Motorcycle
Imagine you just purchased a new Suzuki GSX-R1000 motorcycle two months ago, and it was stolen before their eyes when they ate in his favorite restaurant. Do not worry, you are completely covered by a policy of full coverage motorcycle insurance mandatory motorcycle secured creditor is prepared. Right?
In most cases, only if you do not have details for the motorcycle insurance is purchased. The reason for this is thatThe insurance covers the most comprehensive motorcycle insurance total loss, such as thefts, accidents or natural disasters, but these policies usually only for the carrying value of the motorcycle market is the exceptional value of the motorcycle loan.
Therefore, if not a fixed amount of bike or motorcycle, maybe some loans credit card is selected, his Suzuki GSX-R1000 May payback more quickly than you paid forreduce the value of your motorcycle loan. Because your motorcycle insurance is likely to cover only the market value of their Suzuki GSX-R1000, there will be the difference between the value of the insurance pays the liability for theft or equal to motion and what you really need in your motorcycle loan.
In the event of a bike is stolen or later, buyers of motorcycles in the first two years ofMotorcycle loans are probably not paid enough for their motorcycle insurance to cover the loan value motorcycle. What is a motorcycle buyer to do to protect their unique value borrowed bike?
The response of some buyers of motion is a little known policy called the insurance gap. Is full insurance Gap insurance covers the loss ofIn contrast to the amount of your motorcycle insurance to pay for a total loss of his bike and the value of your motorcycle loan.
Here's a small example. Suppose your Suzuki GSX-R 1000 has a current market value of $ 7500 written off, but $ 9500 on his bike for him to be ready. In case of total loss, such as theft or accident, motorcycle insurance is likely to be used for paymentmarket value of $7500. However, you still owe your motorcycle lender $9500 so you have a gap of $2,000 ($9500-$7500=$2000). Gap insurance covers the $2000 gap that you still owe to the motorcycle lender since the motorcycle insurance company only paid you $7500 for your stolen or totaled Suzuki GSX-R1000.
