Gap Insurance to Protect Your Investment and Enjoy Peace of Mind

Gap insurance is designed to protect a driver in the event of a total loss due to an accident or theft. Gap insurance covers the gap between the amount an insurance company pays out from an insurance claim and the amount owed on the vehicle. Gap insurance is crucial for people who finance or lease their vehicle. It can help protect you from having to pay out of pocket if your vehicle is totaled.

What Does Gap Insurance Cover?

Gap insurance covers the difference between what you owe on the vehicle and the current market value of the vehicle. This can include things like taxes, fees, and the balance of the loan. It can also cover the cost of a replacement vehicle if the original is totaled. Gap insurance is not the same as collision or comprehensive insurance, which covers the cost of repairs to a vehicle.

When Is Gap Insurance Necessary?

Gap insurance is necessary for people who finance or lease their vehicle. This is because the amount you owe on the vehicle may be more than the current market value of the vehicle. Without gap insurance, you could be stuck with the difference if your vehicle is totaled. Gap insurance can also be beneficial if you are considering a long-term loan, since the value of the vehicle may decrease over time.

How Do I Get Gap Insurance?

Gap insurance can usually be added to an existing auto insurance policy. Gap insurance can also be purchased from a third-party insurer, such as a car dealership. Be sure to ask about the coverage and cost of gap insurance when you are shopping for auto insurance. You should also make sure that the gap insurance you purchase is comprehensive and covers all the costs associated with a total loss.

Contact an Insurance Agent for More Information

Gap insurance is important for protecting your investment and giving you peace of mind in the event of a total loss. If you have questions about gap insurance or want to get a policy, contact an auto insurance agent today. They can help you determine if gap insurance is right for you and provide you with a quote. With gap insurance, you can rest easy knowing that you are protected if the worst happens.