Does Aaa Full Coverage Include Gap Insurance
Friday, February 3, 2023
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Does AAA Full Coverage Include Gap Insurance?
Gap insurance is an important insurance coverage for vehicle owners, especially those who are financing their car with a loan. It covers the difference between the actual cash value of your car and the amount you still owe on the loan. This coverage is also known as “guaranteed auto protection” or GAP. So, does AAA full coverage include gap insurance?
What is Gap Insurance?
Gap insurance is a type of auto insurance that covers the difference, or gap, between the actual cash value (ACV) of your car and the amount you still owe on your loan if your car is totaled or stolen. Without this coverage, you could be stuck paying off the loan balance on a car that you no longer have. Gap insurance is also known as “guaranteed auto protection” or GAP.
Does AAA Offer Gap Insurance?
No, AAA does not offer gap insurance. Although AAA offers a wide range of auto insurance coverage, gap insurance is not one of them. You can, however, purchase gap insurance from other providers or through your lender or dealership.
What is AAA’s Full Coverage?
AAA’s full coverage auto insurance policy includes liability coverage, uninsured or underinsured motorist coverage, medical payments coverage, comprehensive coverage, and collision coverage. Liability coverage pays for bodily injury and property damage you cause to others in an accident. Uninsured or underinsured motorist coverage pays for your medical bills and property damage if you are hit by a driver who doesn’t have enough insurance. Medical payments coverage pays your medical bills if you are injured in an accident. Comprehensive coverage pays for damage to your car caused by events such as theft, fire, or hail. Collision coverage pays for damage to your car due to a collision with another vehicle or object.
How Does Gap Insurance Work?
Gap insurance is an optional coverage that you can purchase when you buy a car or anytime afterwards. It pays the difference between the ACV of your car and the amount you still owe on your loan if your car is totaled or stolen. The ACV of your car is determined by an appraiser and is usually lower than what you paid for the car. So, if the ACV is lower than the amount you still owe on the loan, gap insurance can help you pay the difference.
Should You Get Gap Insurance?
Whether or not you should get gap insurance depends on your individual situation. If you are financing a car with a loan, gap insurance can be a good idea since it can help you avoid paying a loan balance on a car that you no longer have. However, if you are paying cash for a car or if you have a loan with a very low balance, gap insurance might not be necessary.
It’s always a good idea to research your options before deciding whether or not to purchase gap insurance. Talk to your insurance agent or lender about your situation to see if gap insurance is right for you.
Conclusion
Gap insurance is an important coverage for vehicle owners who are financing their car with a loan. It pays the difference between the actual cash value of the car and the amount you still owe on the loan if your car is totaled or stolen. While AAA does not offer gap insurance, you can purchase it from other providers or through your lender or dealership. Whether or not you should get gap insurance depends on your individual situation, so it’s always a good idea to discuss the matter with your insurance agent or lender.
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