Gaithersburg: 301-670-7030
Baltimore: 410-769-5400
Frederick: 301-668-2100
Contact Us For Legal Help

Auto Accident Blog

What is GAP (Guaranteed Asset Protection) Insurance?

Tuesday, April 17, 2018

When you are involved in an automobile collision, it can be frustrating to deal with the property damage claim. If your vehicle can be fixed, it’s pretty straightforward; the insurance carrier will typically work directly with an auto body shop and the process can be smooth. However, if your vehicle is declared a total loss, it can be a frustrating process.

The Value of GAP Insurance

The Value of GAP Insurance If your vehicle is declared a total loss, and the total loss value provided by the insurance carrier is higher than what you owe on your loan, you will not have an issue. You can pay off your loan and use the remainder to put toward a new vehicle. However, if the total loss value provided by the insurance carrier is lower than what you owe on the loan, you will be out of pocket to your lienholder for the difference, unless you purchased GAP (Guaranteed Asset Protection) insurance.

GAP insurance is optional coverage that you can purchase, which will cover the difference between the total loss value and the amount you owe on your loan. In addition to situations where your vehicle is determined a total loss, GAP insurance also comes into play if your vehicle is stolen.

When To Purchase GAP Insurance

The question then becomes: should I purchase GAP insurance? The answer depends on a number of factors including: how much you can afford to pay out of pocket if your vehicle is totaled or stolen and how much money you put down at the purchase of your car, among many other factors. You can purchase GAP insurance through many common insurance carriers or the dealership where you purchased your vehicle. It is important to look at every factor before deciding whether you need GAP insurance.

If you are have questions about GAP insurance or are injured in a motor vehicle collision and are seeking representation, please contact Elizabeth A. Shura, Esq. at 301-670-7030.

Understanding Your Auto Insurance in Maryland

Friday, November 17, 2017

Elizabeth Shura, AttorneyIn most states, including Maryland, automobile insurance is mandatory. There are many different layers of automobile insurance and they can often be difficult to navigate. We have put together a list of the most common options below to help our clients choose what is best for them.

Liability Insurance - Bodily Injury and Property Damage

Bodily injury and property damage liability insurance are mandatory in the state of Maryland. This insurance coverage pays for damage to property or bodily injury to another person when you are at fault for a motor vehicle collision. Maryland has established mandatory minimum policy limits as follows: (1) bodily injury - $30,000 per person/$60,000 per incident and (2) property damage - $15,000 per incident. You can choose to purchase higher policy limits for a higher premium, which will help to protect you from personal liability if you cause a collision.

Uninsured Motorist Coverage

Uninsured motorist coverage is also mandatory in the state of Maryland. This insurance will pay for your injuries and property damage, as well as injuries to your passengers, if you are involved in a motor vehicle collision and (1) the at-fault driver is uninsured or (2) the at-fault driver flees the scene of the collision and cannot be identified. The mandatory minimum policy limits are the same as liability insurance - (1) bodily injury - $30,000 per person/$60,000 per incident and (2) property damage - $15,000 per incident. You can also choose to purchase higher policy limits for a higher premium, but the limits must not exceed your limits for liability insurance. Uninsured motorist coverage also includes underinsured motorist coverage, which kicks in when the at-fault driver’s policy limits are less than your uninsured motorist policy limits and do not satisfy your claim. You can recover above the at-fault driver’s policy limits up to your uninsured motorist policy limit.

Personal Injury Protection

Personal injury protection (PIP) is insurance coverage that will cover medical expenses and lost wages which result from a motor vehicle collision, regardless of who caused the collision. If you choose to purchase PIP, the standard amount is $2,500 worth of coverage, although you may choose a higher limit. You can decide to waive PIP for yourself and resident relatives (family members who live in your household) over the age of 16, which will result in a lower premium. The PIP waiver will not apply to family members under the age of 16 or passengers who are not resident relatives. You must make a claim for PIP benefits within a year of the collision or your claim will be barred.

Collision Coverage

This is optional insurance coverage that you may purchase, which provides coverage for your property damage if you are involved in a motor vehicle collision. The higher amount of collision coverage you purchase, the higher your premium is. The rate is based on your vehicle, but not just the value. It is complex and looks into the cost of repairing your vehicle, among other factors.

Comprehensive Coverage

This is optional insurance coverage that you may purchase, which provides coverage for property damage caused by something other than an automobile collision (for example, a storm or theft). As with collision coverage, the higher amount of collision coverage you purchase, the higher your premium is.

Although these are the most common types of insurance coverage available in Maryland, there are many more including but not limited to rental coverage and medical payments coverage (only covers medical expenses, not lost wages).

If you are injured in a motor vehicle collision and are seeking representation or have a question about your coverage, please contact Elizabeth Shura, Esq. at 301-670-7030.

Recent Posts


Tags


Archive

RSS

What Our Clients Say

Known for our unwavering commitment to clients, for our integrity, and for delivering the best results, our clients continue to refer their friends, families and neighbors to us for their legal needs.


"One year ago today I made the call to your office. The best decision I could make. I wanted to share with you how impressed I am with your staff and your professionalism."

Heather P.


"Craig did a great job representing me! He's the lawyer I have trusted with my legal needs because he's professional, knowledgeable, and keeps me informed about my case."

Jaclyn K.


"I would like to express my gratitude for your efforts and dedication for my disability case. It's has been quite a long and upsetting process but you have handled my case in an extremely competent and responsible manner."

Leo H.


"I have recommended Mr. Feldman to several of my friends and colleagues and have heard nothing but excellent reviews. He is the best lawyer I have ever used."

Martin


"I received the check today. I could not believe it until I saw the check. Thank you so much. You have improved my family's quality of life tenfold."

Mike F.


"These guys go above and beyond! They always have your best interest in mind."

Mike W.


"You have been kind throughout this process and I appreciate your professionalism as well as your gentle concern. Thanks for helping us and all the others who need your legal expertise. We are grateful."

Nancy F.


"Thanks to Mr. Shultz's aggressive and professional work ethic style I was able to receive the medical services and compensation pertaining to my case."

Navdeep C.


"I can honestly say this firm is simply TOP NOTCH! They not only have handled countless cases for my members that require their services, they also have gone well beyond their "scope" to help some of my folks in other areas of need. "

Rick H.


"The attention and professional care the staff has taken toward my needs has always been excellent. I have no complaints nor worries that my issues discussed are not addressed."

Tim T.


"I just got off the phone with Craig and let him know how thankful we are to you, him and Ken for all your efforts – you are all really terrific to work with!"

Val K.


Locations Throughout Maryland, Virginia & Washington DC

Gaithersburg Office

481 N. Frederick Avenue, Suite 300
Gaithersburg, MD 20877
301-670-7030 / 800-248-3352
Fax: 301-670-9492

Lutherville Office

1301 York Road, Suite 600
Lutherville, MD 21093
410-769-5400 / 800-248-3352
Fax: 410-769-9200

Frederick Office

30 W. Patrick Street, Suite 105
Frederick, MD 21701
301-668-2100 / 800-827-2667
Fax: 301-668-2000

Subscribe To Our Newsletter


TOP