June 2018

Here’s an unpleasant thought: you buy a new car and within months it’s stolen or totaled following an accident. You believe that your insurance coverage is excellent, but are soon rudely awakened when your finance company sends you a bill for thousands of dollars. Had you chosen gap insurance, your finance company wouldn’t be demanding payment. That is if you knew about such coverage in the first place.

car crash gap insurance — Is your auto insurance sufficient for protecting you against total loss?

What is Gap Coverage?

Gap insurance, also known as gap coverage, pays the difference between what you owe on your vehicle and what your car is worth. Gap coverage is especially important if you do not put enough money down on your new car and its value has slipped below what you owe on it.

For instance, you buy a new car and pay $27,500 for it, putting $2,500 down. You take out a loan for $25,000 and five payments later your outstanding balance falls to $23,500.

Unfortunately, you get into an accident that destroys your car, which soon reveals how vulnerable you really are. You file a claim with your insurer and the insurance company sends your finance company a check for $19,500, representing the value of the car minus your $500 deductible. The difference here is $4,000, an amount that your finance company says that you still owe on the loan.

That gap represents the difference between the loan balance and your insurance payment, monies that you must repay.

Going Upside Down

Many car shoppers are “upside down” or “underwater” with their auto loans, a term that also describes some homeowners.

Typically, borrowers are upside down for two reasons:

1), they do not put enough money down, and

2), the car loses a significant amount of its value within the first few months of ownership.

Indeed, it is not uncommon for a new car to depreciate rapidly with Edmunds.com noting that a new vehicle loses on average 11 percent of its value the moment it drives off the dealer’s lot. Several months later the car’s value may fall by 25 to 30 percent, making it entirely possible that you owe more to your finance company than what your insurer says it is worth.

Gap Protection Coverage

You may not need gap protection if you put 20 percent or more down and your loan term is short, such as for 36 months. Some consumers make the mistake of rolling their related fees and taxes into their loan and perhaps adding extended warranty coverage as well.

One way to make sure that you are not buying a car that will immediately put you underwater is by using an auto loan calculator such as the one that’s available online from Bankrate.com. Then, compare that number with what Kelly Blue Book lists as your vehicle’s depreciation rate.

As long as you owe less for your vehicle than what it is worth, then you are okay.

Buying Gap Insurance

Before you run out to buy gap coverage, you should review your loan purchase agreement as you may already have it. Such coverage is more common if you lease a vehicle than if you were to finance one. In any case, your finance company may have added that coverage with your agreement.

Indeed, some lenders require gap coverage because they know you may find it difficult to settle the difference later on.

Your current insurer may offer gap coverage, a small cost that’s added to your auto insurance bill. Contact your insurer to get a quote for the gap or actual cash value insurance.

Keep in mind that you will still have to pay a deductible and may receive less money if your car has high miles or is in poor condition. You can cancel gap coverage once you determine you are no longer upside down.

Avoid a Financial Catastrophe

Gap coverage may save you from financial calamity, enabling you to get back on your feet quickly. Without such coverage, you may find yourself unable to afford a replacement vehicle, worsening an already serious problem.

See Also — 7 Ways to Trim Car Insurance

Photo credit: La Cara Salma via Wikipedia. This file is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported, 2.5 Generic, 2.0 Generic and 1.0 Generic license.

When you think of the Chevy Blazer name, an image of a burly full-size SUV may come to mind. That representation would be correct, especially if you had in mind the first model sporting the Blazer inscription.

Indeed, when the Chevrolet K5 Blazer rolled out in 1969, it immediately made a name for itself as a traditional body-on-frame utility vehicle with standard rear-wheel drive and available four-wheel drive. Like all models of that period, the Blazer was derived from a full-size truck platform, in this case, the same GM architecture supporting Chevrolet and GMC trucks.

2019 Chevy Blazer — 2019 Chevrolet Blazer RS.

2019 Chevrolet Blazer

Fast forward to today and Chevrolet has plans to bring the Blazer name back for the 2019 model year. The new model has aggressive looks, but it is now a crossover based on the same platform underpinning the Cadillac XT5 and GMC Acadia. While the original had strong off-road chops, the new model is chiefly for on-road service with its standard front-wheel drive and available all-wheel drive.

Thus, you may be able to safely head down a clearly marked path with the new Blazer, but you won’t follow that Jeep as it works its way through a slough or fords a shallow creek. Instead, the all-new Blazer is all about giving Chevrolet and its fans something it really needed: a competitor to the midsize, two-row Ford Edge.

Chevrolet introduced the 2019 Blazer this month, offering photos and details we’ll examine here. The new model will arrive at Chevrolet dealers in early 2019 and slot between the Equinox and the three-row midsize Traverse. Other competitors in this segment include the Jeep Cherokee, Hyundai Santa Fe, Nissan Murano and the Kia Sorento.

This 1979 Chevrolet K5 Blazer Cheyenne is one example of the earliest Blazer model.

A Matter of Design

As the photos reveal, Chevrolet strived to make the Blazer aggressive without carrying that look too far. The front fascia features a gaping grille, offset by slender lights and pronounced cut-outs housing the available fog lamps. The hood turns downward into the grille, giving this model a powerful appearance.

Front to back, the new model projects strength, imbuing it with an attitude that underscores its aggressiveness. Take note of the high beltline, which abruptly pulls up at the rear door handles. It is a look Volvo rolled out with the 2019 XC40. From the rear is an available liftgate spoiler with dual-element tail lamps.

Moving inside, the emphasis is on accommodating five passengers with ease. That’s something the Ford Edge does and we expect the Blazer will manage. Chevrolet describes the cockpit as driver-centric, making note of the various color and trim choices. Further, the Blazer’s cabin features a padded knee area, round air vents and grab handles on each door. Behind the front bucket seats is a sliding rear seat.

Importantly, the Chevrolet Blazer offers up to 64.2 cubic feet of storage space with the rear seat folded flat. This compares to 73.4 cubic feet in the Edge and 67 cubic feet in the Murano. The two top trim models also come with a unique cargo management system.

Under the Hood

If you’re looking for something different under the hood, you won’t find it. At least not yet. GM does have a turbo-diesel offered in select models such as the Chevrolet Equinox and Colorado, but it won’t find its way into the 2019 Blazer.

Instead, the automaker’s trusty and ubiquitous 2.5-liter four-cylinder engine comes standard, delivering 193 horsepower and 188 pound-feet of torque. If that isn’t enough power, the popular 3.6-liter V6 is another choice. This one makes 305 horsepower and 269 pound-feet of torque. Chevrolet pairs both engines with its new nine-speed automatic transmission. The available all-wheel-drive system offers an optional twin-clutch engagement on the two top trim models.

Chevrolet says that the Blazer will pull up to 4,500 pounds when properly equipped. That beats the Edge (3,500 pounds) and is well ahead of the Murano. On the other hand, it trails the Kia and Hyundai as the pair top out at 5,000 pounds.

Chevy Blazer Miscellany

So, what are the other finer points about the all-new Blazer?

Well, let’s look closer at towing. Not only can this new model pull your camper or skiff, but it will offer available hitch view and hitch guidance to aid you as you make a connection without a second person present.

You’ll also find a Chevrolet-first electronic locking glove box with valet mode, available automatic heated steering wheel and heated and ventilated front seats, heated outboard rear seats, wireless charging and up to six USB ports. Chevrolet’s latest infotainment system with an 8-inch color touch screen comes standard. You’ll also find Apple CarPlay and Android Auto smartphone compatibility and 4G LTE Wi-Fi.

Your New Chevy Blazer

Chevrolet’s new Blazer isn’t anything like that first model or any other that once sported the name. The original Blazer was popular, with more than 8 million units sold. That said, we think the new one will find its own place in the market and enable Chevrolet to compete effectively against all comers.