What is GAP Insurance?
So you’ve purchased a new car and you’re looking into car insurance. You’ve heard about GAP Insurance, but you’re still unsure on whether your vehicle needs it or not. We’re here to break things down for you!
Guaranteed auto protection (GAP) insurance is protection for your vehicle that covers the gap between an auto loan and what insurance would pay you if the vehicle is ever stolen or totaled after an accident. Your Collision Coverage most likely factors in your car’s depreciated value after purchasing. GAP insurance can help you pay the gap between the depreciated value of your vehicle and the money you still owe. GAP insurance is also available to cover other damage to your vehicle from things like floods, fires, and more.
If your vehicle is ever stolen, GAP insurance will also cover the amount still owed on the loan and all that’s left for you to pay is the insurance deductible. That could be a real life-saver to your pockets as you move forward in purchasing a new vehicle.
This type of coverage is optional and is generally not required by loan lenders. It’s an added layer of protection to Comprehensive and Collision Auto Insurance. GAP insurance is there to give you peace of mind as you deal with paying for emergencies related to your car.
Is GAP Insurance worth it?
GAP insurance isn’t needed by everyone, but it could be helpful for you! It’s important to note that this type of coverage is only available if you’re leasing or financing a new vehicle. For those with auto loans, it could be an important coverage to have, especially during an accident or if you’re ever a victim of theft. If you’re unsure on whether you need GAP insurance for your current vehicle, connect with our team! Nickerson Insurance Systems can help guide you to the right coverage for your car.
For many car owners, GAP insurance is worth it if you are leasing a car and you owe more on a loan than what your car is currently worth. You should consider dropping the GAP insurance once the loan is less than the current value of your vehicle.
How much does GAP Insurance usually cost?
Your cost would usually depend on individual factors related to the value of your car.
You can buy GAP insurance through the local car dealership when you buy your car or through an insurance provider.. If it’s added to your auto insurance policy, you’ll only be charged $20 per year.
If you’re interested in guaranteed auto protection – Nickerson Insurance Systems, Inc. can get you covered
Speak with our team to find out more about this coverage and what it can do for you. If GAP insurance isn’t right for you, our team can help you find the right coverage for your vehicle. We offer various types of auto insurance and can walk you through our policies. We’re here to answer any questions you might have about insurance. Connect with our team today and get a quote today!