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In this example, gap insurance will pay that $5,000 difference so you don't have to. However, what's considered a "total loss" varies by state and by auto insurance provider. When to get gap insurance
For example, if you owe $20,000 on your car but it's only worth $16,000, gap insurance covers the $4,000 difference should your car become totaled or stolen. Does my car insurance policy cover ...
Shop around between the dealership, auto insurers and companies that specialize in gap insurance; your best deal may come from your existing car insurance carrier. If you already have full ...
GAP insurance is often paid upfront and the purchaser is usually entitled to a refund of the unused portion of the premium if the vehicle is sold or refinanced before the end of the loan term. [4] There are two ways of getting GAP coverage. The first type is an insurance policy sold by a broker. The second type is a waiver agreement sold by a ...
Guaranteed asset protection insurance (or GAP Insurance) is an insurance coverage offered as a supplement to automobile insurance policies or auto loans. A GAP policy covers the difference between the value of a car (i.e., what the insurance company will typically pay) and what the borrower owes on the loan if the car is totaled or stolen.
Gap insurance is also known as loan or lease gap coverage. As the name implies, it covers the gap between the amount of money your insurance company pays you if your vehicle is stolen or declared ...
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