auto insurance

Bacon-Bit: What is GAP Insurance?

Posted on by Nicole Coleman

When you purchase a new car, it’s important to make sure you have the right protection in place. One key coverage to consider is GAP Insurance-short for Guaranteed Asset Protection.

How GAP Coverage Works:

When your car is a total loss, your standard auto insurance typically pays the current value of the car at the time of the loss. For new cars, this can be significantly less than what you owe on your loan or lease, especially in the first few years when vehicles depreciate rapidly.

GAP insurance covers the “gap” between:

  1. The amount your auto insurance pays (actual cash value).
  2. The balance you still owe on your car loan or lease.
  3. Example:
  • You buy a car for $35,000 and still owe $32,000.
  • A total loss occurs, and your insurance pays $28,000 (current value).
    Without GAP coverage, you’d pay $4,000 out of pocket.
  • With GAP coverage, your policy covers that $4,000 difference, leaving you fully protected.

Why GAP Insurance is Especially Important for New Cars

  • Rapid depreciation: New cars lose value quickly, often 20–30% in the first year.
  • Leases: GAP is often required for leased vehicles to protect the leasing company and you.
  • Peace of mind: It ensures you won’t owe money on a car you no longer have.

How to Purchase Gap Insurance

GAP coverage is highly recommended to avoid unexpected out-of-pocket costs. While many dealerships offer GAP coverage at the time of purchase, you can often secure better value through your insurance provider. We encourage you to contact us first—our team can walk you through your options and help you find potential cost savings. Call Bacon Insurance Group today to see whether GAP coverage makes sense for your new vehicle and to easily add it to your auto policy. It’s a simple step that can protect your investment from day one.

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What is the Minimum Coverage Required for a First-Time Driver?

Posted on by admin

Congratulations on passing your driving test and obtaining your new license. The next step is to secure insurance so you can confidently navigate the roads of Richmond, VA. Bacon Insurance Group can assist you in acquiring the minimum coverage required by state law.

Understanding First-Time Insurance Coverage

Virginia has clear insurance requirements for all drivers, including those who are newly licensed.

To comply with state law, every individual with access to a vehicle must adhere to the current policies that took effect from January 1, 2025, and any subsequent updates.

In simple terms, first-time drivers are required to carry a minimum of $50,000 to cover death or injury to a single person. If an accident results in death or injury to two or more people, the limit is $100,000. For property damage or injury to other persons, the limit is $25,000.

With the minimum coverage, you’ll have insurance to cover injuries and damages to other drivers in the event of an accident for which you are responsible. If you’re concerned that the state’s minimum coverage may not be sufficient, our agent can discuss options to increase your coverage.

Get in Touch

As a first-time driver, our team at Bacon Insurance Group wants to ensure you have the necessary coverage to drive with confidence. When you speak with one of our agents, we’ll inform you about additional coverage options and explain the consequences of not carrying at least the state-required minimum. Contact us so we can guide you towards safer driving.

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Can You Switch Auto Insurance Providers Mid-Policy? A Guide to Changing Coverage

Posted on by admin

Are you stuck with an auto insurance policy you’re not happy with? Many drivers believe that they are locked in until renewal, but the truth is that switching providers mid-policy is easier than you think. Whether you’re looking to improve your coverage or want a better rate, switching may be the solution for you.

Why Switch Providers?

Switching auto insurance providers mid-policy may make sense in certain situations, such as if you find better rates with a competitor. You may also choose to switch providers if you experience poor customer service or discover another provider that is offering more comprehensive coverage options better tailored to your needs.

Life changes, such as purchasing a new car or moving to a new state with different insurance requirements, may also prompt a mid-policy switch of providers. Whatever the reason, switching may help you save money and gain peace of mind.

How to Switch Providers Mid-Policy

Making the switch to a new provider mid-policy is often a straightforward process. Start by reviewing your current policy to check for potential early cancellation fees or refund policies. Next, shop around for a new policy by comparing rates, coverage options, and customer reviews to find the best fit.

Once you’ve chosen a new provider, secure the policy before canceling your old one to avoid a lapse in coverage. Finally, notify your current insurance provider about the cancellation and have it confirmed in writing.

Get Auto Coverage in Richmond, VA

Switching auto insurance mid-policy is entirely possible and often beneficial. At Bacon Insurance Group in Richmond, VA, we offer comprehensive auto policies to fit the unique coverage needs of drivers. Contact Bacon Insurance Group today to learn more about our products or to request a quote.

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The Impact of Ride-Sharing on Personal Auto Insurance Policies

Posted on by admin

Ride-sharing services have revolutionized how we commute. At the Bacon Insurance Group, we take pride in offering a variety of auto insurance policies tailored to this new driving dynamic in the Richmond, VA area. Let’s discuss how providing service to a ride-sharing company can impact your personal auto insurance policy.

The Ride-sharing Revolution and Insurance

The rise of companies like Uber and Lyft has led numerous people to use their personal vehicles for commercial purposes. This changes the risk dynamic, and it’s important to understand that a standard personal auto insurance policy might not cover all aspects of ride-sharing.

Potential for Coverage Gaps

Most personal auto insurance policies are designed for private use, not commercial ones. When you drive for a ride-sharing service, your private policy may not cover any incidents while on the job. Such a gap can expose you financially if you have an accident while transporting passengers.

The Role of Ride-Sharing Insurance

Insurance providers now offer ride-sharing endorsements or separate policies to cover these potential gaps. These additions offer the necessary coverage when you’re working, ensuring you’re fully protected at every stage of your ride-sharing venture.

Why Adequate Coverage Matters

Understanding these changes and adjusting your insurance policy accordingly is crucial. Without the proper coverage, you could risk facing substantial out-of-pocket expenses in the event of an accident. Ensuring you have the right policy can protect your financial health and provide peace of mind.

Handle the complexities of auto insurance with us. Contact Bacon Insurance Group in Richmond, VA, for personalized advice on ride-sharing insurance options. We’re committed to guiding you through the insurance landscape in the age of ride-sharing and ensuring you have the coverage you need.

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