Do I Need GAP Insurance in Kansas?
Some motorists have heard the term “GAP coverage,” but aren’t exactly sure what it entails. Other drivers know what GAP insurance is, but aren’t sure if it’s something they need. To help you understand the ins and outs of GAP insurance in Kansas, as well as if this coverage is right for you, the Kansas car wreck attorneys at Patterson Legal Group give you the details you need to make an informed decision.
What Is Kansas GAP Coverage in Auto Insurance?
GAP stands for “guaranteed asset protection.” In regards to your car insurance, it’s an optional type of coverage that protects you in the event of theft or your vehicle being written off as a “total loss.” As per Kansas Revised Statute § 8-197, a total loss is defined as a vehicle that “has been wrecked or damaged to the extent that the total cost of repair is 75% or more of the fair market value of the motor vehicle immediately preceding the time it was wrecked or damaged and such condition was not merely exterior cosmetic damage.”
GAP insurance in Kansas covers any payments owed on the vehicle’s lease or loan in the event of a total wreck.
Which Companies Offer GAP Insurance in Kansas?
Insurance companies are constantly changing their product offerings in order to maximize profits. Three things to keep in mind are:
- Not all auto insurance companies offer GAP coverage in Kansas
- Insurance companies that offer GAP insurance in other states may not offer it in Kansas
- Your insurance company may offer or stop offering Kansas GAP coverage at any given time
As of this writing, insurance companies that offer Kansas GAP coverage include:
- Esurance
- The Hartford
- Nationwide
- Progressive
- Shelter Insurance
Three Reasons Why You Should Consider Kansas GAP Coverage
GAP insurance isn’t necessary for all drivers. In some cases, it could be a waste of good money. In other cases, it can make the difference between financial stability and economic peril. The Kansas car crash attorneys at Patterson Legal Group recommend exploring Kansas GAP insurance in the following three scenarios:
- Leased Vehicles: many car companies require GAP coverage on leased vehicles. Even if it’s not required, you should consider the difference between the vehicle’s current value and the remaining payments on your lease if the car is totaled or stolen. Kansas GAP coverage can help protect you from having to make payments on a car you no longer have.
- Depreciation Outpaces Loan Payments: new cars depreciate rapidly during the first few years of ownership. It’s common for most vehicles to lose 20% to 30% of their value in the first year alone. If you made a small down payment and financed most of the car’s purchase price then you might owe more on your loan than what the car is worth.
- If your car is totaled or stolen while money is still owed on it then your standard comprehensive and collision coverage would only pay the current market value of the car. GAP coverage can make up the difference between your vehicle’s depreciated value and the outstanding loan balance.
- Long-Term Loans: lengthy car loans, such as 60 months or more, are popular with people that want to make lower monthly payments. While these types of loans can make owning a car more convenient, they can also leave you in a financial hole in the event of a total wreck. If your car accident takes place during the second half of your loan period then you may owe more on the loan than the vehicle’s current value. GAP insurance can be especially beneficial for those with lengthy loans, as it covers the difference should a total loss occur.
There is no one-size-fits-all answer for GAP coverage. It really depends on an individual’s financial situation, the length of their vehicle lease or loan, and the value of the vehicle. That said, if you fall into one of the situations listed above then GAP insurance should be a consideration.
Contact a Kansas Car Wreck Lawyer
The Kansas injury attorneys at Patterson Legal Group hope that you’re never in an accident that results in a total loss of your vehicle. Unfortunately, some accidents happen through no fault of your own. If you’ve suffered injuries in a car wreck caused by another party then contact us for immediate assistance.
You can reach Patterson Legal Group 24 hours a day, 7 days a week by phone at (888) 687-2400. You can also connect with our team by submitting your claim information online through this secure contact form or connecting with our LiveChat representatives. Remember, our attorneys work on a “no win, no fee” basis, so you won’t pay a dime unless money has been recovered on your behalf.
Patterson Legal Group has been representing injury victims in Kansas, Missouri, and Oklahoma for more than 25 years. Our knowledgeable and experienced attorneys have recovered more than $250-million in settlements for thousands of clients. For an unbeatable blend of high-level legal services and fantastic customer care, Patterson Legal Group is the personal injury firm for you.
