Does Aaa Provide Gap Insurance
Does AAA Provide Gap Insurance?
What is Gap Insurance?
Gap insurance is a type of insurance policy that covers the difference between the actual cash value of a vehicle and the amount owed on the financing or lease of that vehicle. It is designed to help protect drivers from the financial impact of an accident or theft of their vehicle. Gap insurance is important for drivers who may be upside down on their car loan or lease, meaning they owe more on their loan than the car is currently worth. Without gap insurance, drivers may be responsible for paying the difference between what their insurance company will pay and what they owe on their loan or lease.
Does AAA Provide Gap Insurance?
Yes, AAA does provide gap insurance. AAA gap insurance is an optional coverage that is available to AAA members who finance or lease a vehicle. With AAA gap insurance, you can protect yourself from the financial burden of an accident or theft of your vehicle. Gap insurance can help cover the cost of the difference between what your insurance company will pay and what you owe on your loan or lease. AAA gap insurance is available in most states and can be added to your existing auto insurance policy.
How Does AAA Gap Insurance Work?
When you purchase a new or used vehicle, you will be required to purchase a certain amount of liability and physical damage coverage. The amount of coverage you need will depend on the value of the car and the amount you owe on the loan or lease. If your vehicle is damaged in an accident or stolen, your insurance company will only pay the actual cash value of the car, which may be less than the amount you owe on your loan or lease. AAA gap insurance can help cover the difference between what you owe and what your insurance company will pay.
What Does AAA Gap Insurance Cover?
AAA gap insurance covers the difference between the actual cash value of a vehicle and the amount owed on the financing or lease of that vehicle. This coverage is available in most states and can be added to your existing auto insurance policy. AAA gap insurance can help protect you from the financial burden of an accident or theft of your vehicle. It is important to note that gap insurance does not cover any additional costs such as towing, storage, or rental car fees.
How Much Does AAA Gap Insurance Cost?
The cost of AAA gap insurance will vary depending on the amount of coverage you need and the amount you owe on your loan or lease. Generally, AAA gap insurance will cost between one and three percent of the loan or lease amount. It is important to note that gap insurance will not cover any additional costs such as towing, storage, or rental car fees.
Conclusion
Gap insurance is a type of insurance policy that covers the difference between the actual cash value of a vehicle and the amount owed on the financing or lease of that vehicle. AAA does provide gap insurance, which is available to AAA members who finance or lease a vehicle. The cost of AAA gap insurance will vary depending on the amount of coverage you need and the amount you owe on your loan or lease. Gap insurance can help protect drivers from the financial burden of an accident or theft of their vehicle.
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