Understanding State Farm Free Gap Insurance

What is Gap Insurance?

Gap insurance, also known as “guaranteed auto protection” or GAP, is an optional insurance policy that covers the difference between the amount you owe on your car loan and the amount your car is worth in the event that your car is totalled or stolen. It is important to understand that gap insurance does not cover any damage to the car itself, but rather the difference between the car’s depreciated value and the amount still owed on the loan.

Why Do I Need Gap Insurance?

Gap insurance is important for drivers who are financing their car. Without gap insurance, drivers risk owing more on their car loan than their car is worth in the event that their car is totalled or stolen. This is because cars depreciate quickly, and car loans often last much longer than the car’s value. With gap insurance, drivers can be sure that they will not be stuck with a large loan balance in the event of a total loss.

What is State Farm’s Free Gap Insurance?

State Farm’s free gap insurance is an optional coverage that is included in the full coverage auto insurance policy that State Farm offers. This coverage pays the difference between the amount owed on the car loan and the value of the car in the event of a total loss. This coverage is included in the full coverage policy without any additional cost to the policyholder.

What Does State Farm’s Free Gap Insurance Cover?

State Farm’s free gap insurance covers the difference between the amount owed on the car loan and the value of the car in the event of a total loss. This coverage is included in the full coverage policy without any additional cost to the policyholder. It is important to note that this coverage does not cover any damage to the car itself, but rather the difference between the car’s depreciated value and the amount still owed on the loan.

How Do I Get State Farm’s Free Gap Insurance?

State Farm’s free gap insurance is included in the full coverage auto policy that State Farm offers. To get this coverage, simply sign up for a full coverage policy with State Farm. You do not need to do anything additional to get the gap coverage, as it is included in the full coverage policy without any additional cost to the policyholder.

Conclusion

Gap insurance is an important coverage for drivers who are financing their car. Without gap insurance, drivers risk owing more on their car loan than their car is worth in the event of a total loss. State Farm’s free gap insurance is an optional coverage that is included in the full coverage auto insurance policy that State Farm offers. This coverage pays the difference between the amount owed on the car loan and the value of the car in the event of a total loss. To get this coverage, simply sign up for a full coverage policy with State Farm.