The Best Place to Buy Gap Insurance

What is Gap Insurance?

Gap insurance is an insurance product that you can purchase to protect yourself financially if your car is stolen or totaled in an accident. It is designed to cover the difference between the amount of money your auto insurance company will pay out and the amount you still owe on your car loan or lease. Gap insurance is also referred to as “Guaranteed Auto Protection” or “Guaranteed Asset Protection” insurance.

Why Do You Need Gap Insurance?

Gap insurance is important if you owe more money on your car loan than the current market value of your vehicle. If your car is totaled or stolen, your auto insurance company will only pay out the current market value of your vehicle, which could be significantly less than what you still owe. Gap insurance can help cover the difference, so you don’t have to pay for a car you no longer have.

Where Can You Buy Gap Insurance?

Gap insurance is typically offered through your car dealership, as an add-on to your auto insurance policy, or through a third-party provider, like an online insurance broker. Your dealership may offer gap insurance as part of a package deal when you buy or lease a new car, and it’s usually the most expensive option. If you buy or lease a used car, your dealership may still offer gap insurance, but it’s not always available.

What Are the Benefits of Buying Gap Insurance Through an Online Broker?

Buying gap insurance through an online broker can be a great way to save money. Most online brokers offer gap insurance policies at a fraction of the cost of purchasing it through a dealership. Plus, you can compare quotes from multiple providers to make sure you’re getting the best deal. You can also usually sign up for coverage in just a few minutes, so you don’t have to spend time visiting a dealership or waiting for an agent to call you back.

What Should You Look for When Choosing an Online Gap Insurance Provider?

When choosing an online gap insurance provider, you should look for one that offers the coverage you need at a price you can afford. Check to see if the provider offers discounts for bundling gap insurance with an auto insurance policy. Also, make sure the provider is reputable and has good customer reviews. You should also check to see if the provider offers any additional benefits, such as roadside assistance or rental car reimbursement.

Bottom Line

Gap insurance is an important type of insurance that can help protect you financially if your car is stolen or totaled in an accident. While you can purchase gap insurance through your car dealership, you can often save money by purchasing it through an online broker. When choosing an online gap insurance provider, make sure you check for discounts, read customer reviews, and look for additional benefits.