Best Way To Purchase Gap Insurance

What is Gap Insurance?

Gap Insurance, also known as Guaranteed Asset Protection, is an insurance policy that covers the difference between the amount an insurance company is willing to pay out on a claim and the amount a consumer owes on their car loan in the event of an accident. Gap Insurance is an important form of protection for anyone who has financed a vehicle. When a car is totaled in an accident, the insurance company typically pays out the current market value of the car. If the consumer still owes more money on the loan than the car is worth, that difference is referred to as the “gap”. Gap Insurance will cover this gap and give the consumer the peace of mind that they will not be left with a large bill in the event of an accident.

Why Do You Need Gap Insurance?

If you are financing a car, Gap Insurance is an important form of protection. In the event of an accident, the insurance company will only pay out the current market value of the car. If the consumer still owes more money on the loan than the car is worth, the consumer will be left with a large bill. Gap Insurance will cover this gap and give the consumer the peace of mind that they will not be left with a large bill in the event of an accident. It is also important to note that Gap Insurance does not replace the need for car insurance, it only covers the difference between the value of the car and the amount owed on the loan.

How Much Does Gap Insurance Cost?

The cost of Gap Insurance will vary depending on the type of car and the amount of coverage desired. Generally, Gap Insurance can be purchased for a one-time fee of a few hundred dollars. It is important to note that Gap Insurance is not always included in a car loan and may need to be purchased separately.

Where Can You Purchase Gap Insurance?

Gap Insurance can be purchased through a variety of different sources. Many car dealerships offer Gap Insurance as an add-on to car loans. Gap Insurance can also be purchased directly from insurance companies or through an online provider. The best way to purchase Gap Insurance is to shop around and compare prices to find the best deal.

What Should You Look For When Purchasing Gap Insurance?

When purchasing Gap Insurance, it is important to make sure that the policy covers the gap between the value of the car and the amount owed on the loan. It is also important to make sure that the policy covers any deductibles that may be required by the car loan. Finally, it is important to make sure that the policy is valid in the state in which the car is being driven.

Conclusion

Gap Insurance is an important form of protection for anyone who has financed a vehicle. It is important to shop around and compare prices when purchasing Gap Insurance to make sure that you are getting the best deal. It is also important to make sure that the policy covers the gap between the value of the car and the amount owed on the loan, as well as any deductibles that may be required. By following these simple tips, you can make sure that you are protected in the event of an accident.