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Guaranteed Asset Protection Insurance
What is Guaranteed Asset Protection Insurance?
Guaranteed asset protection insurance (or GAP Insurance) is an insurance coverage offered as a supplement to automobile insurance policies. It provides financial protection from certain types of loss that are not covered by standard automobile insurance.
Is Gap Insurance Worth the money?
If your down payment was less than 20%, you may owe more than your car is worth. If your car is totaled or stolen, gap insurance can help you pay off the balance of the loan. If you rolled a loan balance from another car into the loan, gap insurancecan prove beneficial in the event of a total loss.
What is guaranteed auto protection insurance?
Guaranteed auto protection (GAP) Insurance covering the difference between the actual cash value (ACV) of a damaged or stolen vehicle and the amount owed on the car under a loan or lease.
What is a gap claim?
Gap insurance (or gap coverage) is a vital car insurance feature for those who need it. But many drivers believe it'll pay for any totaled car, regardless of its age or the amount owed on it. The truth is different.
How do you make a gap insurance claim?
Before you make a claim on your Gap insurance, you'll need to contact your car insurer. Remember, you need to make a Gap claim only if your vehicle has been declared a write-off. If your car is damaged in a road accident, make sure you get the following from the other driver: name.
Do you get a refund on gap insurance?
When you pay your GAP insurance premium in advance, you are entitled to arefund of the unused portion if you pay off your vehicle early. If you pay your GAPcoverage in monthly installments, you are not entitled to a refund of any used premiums. You may receive a small refund if you cancel early in the month.
How much is the gap insurance?
Alternatively, you can purchase gap insurance at your dealership, though this is likely to cost you significantly more. Many dealerships sell gap insurance coverage for an average of $500 to $1,000, and they often require a large payment upfront.
Is Gap insurance worth it on a lease?
You must carry comprehensive and collision coverage with your car lease insurance company for gap insurance to pay out. Before you purchase a gap insurance policy, make sure it is not an already included coverage by the leasecompany, dealership, or your car leasing insurance company.