When you consider your car insurance, you may not consider gap insurance. In fact, most people consider gap insurance and think of health care plans rather than cars. Gap insurance can cover your car's worth regardless of if you are leasing or on a loan. Here are some of the instances where gap car insurance kicks in. 

Financial Coverage

One of the leading reasons people choose to buy gap car insurance coverage is to help with payments if the car is totaled. For example, if you are in a car accident and your car is considered totaled, you still owe the amount of the loan. The gap insurance will cover the remaining amount of the car loan or lease. This ensures you are not paying for a car that is undrivable. It also ensures the loan or lease companies receive the money for the car. 

Newer Car Coverage

If you have purchased a new car, your largest concern may be an accident where you are not at fault. For this reason, you likely have full coverage insurance that covers every possible issue you can think of. The gap insurance covers the accident issues you may not think of. An important consideration of this is that gap insurance requires the car to be a newer model. This ensures you will not have a major loss if you are not at fault for the accident and your car is a new model. 

Dealer Options

The car dealership may offer gap insurance as part of the car loan or the car lease. If this is the case, additional insurance may not be required. However, it will mean you still need full coverage insurance from the car insurance company of your choice. This ensures you have the car covered regardless of the level of the accident and you have the state-required coverages as well. If there is an accident the dealer coverage will combine with the coverage you choose from a third-party insurance provider. 

These are just a few of the ways gap insurance will kick in after a car accident. If you feel you need to add this type of insurance to your current plan, contact your insurance provider. They can discuss the gap insurances they have available and which ones may be ideal for your situation and needs. They can also discuss bundle packages they may offer to help maintain full coverage of your vehicle.