An Overview of Gap Auto Insurance
Many people may not be familiar with the term GAP insurance but if you own a vehicle you may want to consider learning more about it. Auto GAP insurance stands for Guaranteed Asset Protection. This means that that you will be insured against the difference of what your insurance company tells you your car is worth and the amount you owe on it. This type of insurance can really come in handy if you are involved in an auto accident and your car may be totaled. You may have to pay off the car and by having GAP insurance you can rest assured that you will by covered by your insurance company if this occurs. Not for the fair market value of the car but for what you owe on it.
Most of us know there can be a huge difference in the amount of money that is actually owed on the vehicle and the amount the insurance company may want to pay. This is basically the only assurance you can have that you indeed will be covered in the event you're involved in an unfortunate accident. By obtaining GAP auto insurance you can have the peace of mind knowing that you'll always be covered.
Which Carriers Offer Auto Gap Insurance?
If you're interested in obtaining auto Gap insurance, you may want to speak to your dealer when you purchase the car. This will be the best time to get this type of insurance as well at the best price. Dealers are a good carrier that offer this type of insurance in the event you're involved in an accident or for whatever reason you may need to make certain that you get the total amount for your car that is owed to the bank. By having this type of insurance, you can have a great peace of mind in the knowledge that you won't have to worry about coming up with extra cash if you're involved in a situation where the insurance may get involved and only give you what the car is worth versus the amount you owe on it.
In order to get you to purchase this insurance, many dealers will tell you that you can only obtain this insurance when you purchase the vehicle. This is actually not true as you may have a year or more to get this insurance in the event you do not purchase it right away.
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