Ally Financial Auto Gap Insurance
Gap Insurance for Auto Loans from Ally Financial
What is Gap Insurance?
Gap insurance, also known as Guaranteed Asset Protection (GAP), is a type of insurance that covers the difference between the amount a vehicle is worth and the total amount still owed on a loan or lease. This insurance is especially important if you are financing a new or used vehicle and want to protect yourself in the event of an accident. If your vehicle is damaged beyond repair or is stolen, gap insurance helps to pay off the difference between the loan balance and the amount your insurance company pays.
Why Do You Need Gap Insurance?
Gap insurance can be a great way to protect yourself financially in the event of an accident. Most car insurance policies will only pay you the actual cash value of your vehicle, which can be significantly less than the amount you still owe on your loan or lease. Gap insurance will pay off the difference between the two amounts, so you won’t be left with a large bill to pay.
Gap insurance is especially important if you are financing a new or used vehicle. New vehicles tend to depreciate quickly, so you may owe more on your loan than the vehicle is worth. This can leave you with a significant financial burden if your vehicle is damaged or stolen. Gap insurance can help cover the difference and ensure that you don’t have to come out of pocket for the remaining balance.
Is Gap Insurance Required?
Gap insurance is not required by law, but it’s a good idea to consider it if you are financing a new or used vehicle. You can usually purchase gap insurance from your lender or car insurance company. Some lenders may require you to purchase gap insurance, so it’s important to check with your lender before signing any loan documents.
Ally Financial Auto Gap Insurance
Ally Financial offers gap insurance to its customers who are financing a new or used vehicle. The company’s gap insurance is designed to help pay off the difference between the actual cash value of your vehicle and the amount you owe on your loan or lease in the event of an accident. Ally Financial’s gap insurance is available at a low cost and can be purchased at the same time you purchase your vehicle.
How Much Does Ally Financial Gap Insurance Cost?
The cost of Ally Financial gap insurance will depend on the type of vehicle you are financing and the length of your loan or lease. The company offers several different coverage plans, so you can choose the one that best fits your needs and budget. Generally, the cost of gap insurance from Ally Financial is relatively affordable and can provide peace of mind that you won’t be left with a large bill to pay in the event of an accident.
Conclusion
Gap insurance can be a great way to protect yourself financially in the event of an accident. Ally Financial offers gap insurance to its customers who are financing a new or used vehicle, and the cost of the coverage is relatively affordable. If you are financing a new or used vehicle, it is important to consider gap insurance to make sure you are fully protected in the event of an accident.
