GAP Insurance can also be referred to as Guaranteed Auto Protection. GAP insurance covers the difference or “gap” between what you owe on your vehicle loan and its current market price. GAP insurance is very valuable protection if you have a large auto loan. Speak to one of our insurance agents at Nickerson Insurance Services, Inc. about how GAP insurance could be of benefit to you.
What Does Traditional Auto Insurance Cover?
If you are involved in an accident and your insurance agency deems your vehicle or motorhome a total loss, your auto insurance policy will typically only cover the following:
- Will only cover the current market value of your vehicle or motorhome
- Will not cover any of the amount that you still owe on your auto loan
GAP insurance will pay off your entire loan balance. Without GAP insurance, you will only receive the actual cash value amount and then you will have to pay a deductible. GAP insurance will save you money in the event of an accident. If you have an auto loan and you think you may benefit from additional coverage, speak with an insurance agent at Nickerson.
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