What is GAP Insurance, and is it right for you?
You hear the term every time you purchase a vehicle...but do you really understand what it means? Some people may not be the right fit for this coverage, so educate yourself before you make your purchase to ensure you're making the right decision! And as always, we are here to answer any questions to may have, and help you make the right decision for your lifestyle and needs.
What is GAP insurance?
Guaranteed Asset Protection, also known as GAP insurance or GAP coverage, protects a person borrowing money for an automobile in the event of a total loss of his or her vehicle. A total loss can result from an accident, theft, or environmental damages.
Guaranteed Asset Protection will cover the difference between your insurance settlement and the amount remaining on your auto loan (a.k.a. the "GAP"). We have seen countless unfortunate incidents where a customer has had to pay off their auto loan on a totaled vehicle because his or her insurance settlement only covered a portion of it.
Is GAP insurance right for you?
You may want to consider GAP coverage if you fall into at least one of the following categories:
- High mileage driver
- Putting less than 20% cash down
- Extended repayment terms
- Higher interest rates
GAP insurance is only available at the time of purchase of the vehicle, not a day before or after!
If you fall into one of these categories and are unsure if the coverage is right for you, we are here to answer any questions you may have and help guide you toward the right decision for you and your auto loan.
