Capital One Auto Gap Insurance: What You Need to Know

What Is Gap Insurance?

Gap insurance, or Guaranteed Auto Protection, is a type of coverage that helps protect you from a financial loss if your vehicle is totaled or stolen. In the event of a total loss, gap insurance kicks in and can cover the difference between what is owed on the car and what the insurance company pays out. This means that you don’t have to worry about owing money on a car you no longer have. Gap insurance is offered by many providers, including Capital One.

Who Needs Gap Insurance?

Gap insurance is a great option for anyone who is financing a car. If you purchased your car with a large down payment or made the purchase outright, you may not need gap insurance. However, if you are leasing or financing a car, gap insurance can be a great way to protect your financial interests in the event of a total loss. It can often be included in the lease or loan agreement, so make sure to check with your lender first.

What Does Capital One Auto Gap Insurance Cover?

Capital One Auto Gap Insurance covers the difference between the total loss value of your vehicle as determined by your insurance company and the actual cash value of your car at the time of the accident. This means that if you owe more on your car than what it’s worth, Gap Insurance will pay the difference. It will also cover up to $50,000 in damages, depending on the type of coverage you choose.

What Is the Difference Between Primary and Secondary Gap Insurance?

When it comes to Gap Insurance, there are two main types: primary and secondary. Primary Gap Insurance is offered through your lender and covers the difference between the total loss value of your vehicle and the actual cash value of your car at the time of the accident. Secondary Gap Insurance is offered through a third-party provider and covers the difference between your total loss value and the amount you owe on your loan or lease. Both types of coverage are offered by Capital One.

How Much Does Capital One Auto Gap Insurance Cost?

The cost of Capital One Auto Gap Insurance depends on several factors, including the type of vehicle you are insuring, your driving record, and the type of coverage you choose. Generally, Gap Insurance costs between 2-4% of the total loan or lease amount. You can get an exact quote by talking to a Capital One representative.

Is Gap Insurance Worth It?

Gap Insurance can be a great option for anyone who is financing or leasing a car. It can help protect you from a financial loss if your vehicle is totaled or stolen. So if you are worried about owing money on a car you no longer have, Gap Insurance can be worth it. Talk to a Capital One representative to learn more about the cost and coverage options.