Does Aaa Auto Insurance Offer Gap Insurance
Tuesday, June 20, 2023
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Does AAA Auto Insurance Offer Gap Insurance?
Gap insurance, also known as guaranteed asset protection insurance, is a type of coverage that helps to cover the difference between a car’s actual cash value (ACV) and what is owed on the loan. Many drivers choose to add gap insurance to their auto insurance policy to protect themselves from financial losses in the event of an accident or theft. So, does AAA offer gap insurance?
What Is Gap Insurance?
Gap insurance is an optional coverage that helps to protect drivers from losses when their vehicle is totaled or stolen. If a driver has financed their car, they may be required by the lender to purchase gap insurance. It is important to note that gap coverage is not required by law.
Gap insurance is designed to cover the difference between the car’s actual cash value (ACV) and the loan balance. The ACV is based on the car’s fair market value. This value may be lower than the amount owed on the loan, leaving the driver with a financial gap. Gap insurance covers this gap, so the driver does not have to pay out of pocket for the difference.
Does AAA Offer Gap Insurance?
AAA does offer gap insurance as an optional coverage for their members. This coverage applies to the entire loan balance for all eligible vehicles. In order to qualify for gap coverage, the vehicle must be a new or nearly new car or light truck. The coverage is only available for vehicles with fewer than 36,000 miles and less than 36 months of use.
Gap insurance from AAA is available as a stand-alone policy or as an add-on to an existing auto policy. The cost of gap coverage varies based on the type of vehicle, its age, and the amount of coverage needed.
What Does Gap Insurance Cover?
Gap insurance from AAA covers the difference between the actual cash value of a vehicle and the loan balance. This means that if a driver is in an accident and their vehicle is totaled, they will not be responsible for paying the difference between the ACV and the loan balance. Instead, the gap insurance policy will cover this difference.
Gap insurance from AAA also covers certain types of losses related to theft. If a driver’s car is stolen, the gap insurance policy will cover the difference between the ACV and the loan balance.
Does Gap Insurance Cover Accident-Related Expenses?
Gap insurance from AAA does not cover any accident-related expenses such as medical bills, towing fees, or rental car costs. These expenses are typically covered by the driver’s standard auto insurance policy. So, if a driver has gap insurance from AAA, they will still need to purchase additional auto insurance coverage.
Conclusion
Gap insurance is a type of coverage that helps to cover the difference between a car’s actual cash value (ACV) and what is owed on the loan. AAA does offer gap insurance as an optional coverage for their members. Gap insurance from AAA covers the difference between the actual cash value of a vehicle and the loan balance. However, gap insurance does not cover any accident-related expenses such as medical bills, towing fees, or rental car costs. Drivers should make sure they understand their coverage and purchase additional auto insurance coverage if necessary.
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