Insurance Coverage – Property Damage
There are many types of automobile insurance policies that cover property damage so it is important to review and understand exactly what coverage you have. Insurance for property damage covers (1) damage to other peoples’ vehicles; (2) damage to your vehicle and some companies offer (3) “gap” coverage, which should pay off the difference between the amounts you owe on your vehicle and the book value that the insurance company will pay if your car is totaled. Many people find themselves “upside-down” after a car accident since the insurance company will only pay the fair market value of the car, even though the amount owed is more. The insured still owes the difference to the bank or finance company. Gap coverage can help you prevent ending up in this situation.
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