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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.
Guaranteed Asset Protection (GAP) insurance (also known as GAPS) was established in the North American financial industry.GAP insurance protects the borrower if the car is written off or totalled by paying the remaining difference between the actual cash value of a vehicle and the balance still owed on the financing. [1]
Guaranteed asset protection (GAP) insurance is a type of auto insurance coverage that is most commonly available for newer vehicles. New cars can depreciate quickly, so carrying standard coverage ...
Let’s say you used a $25,000 auto loan to purchase a new vehicle, and you carry a full coverage car insurance policy. Your vehicle is stolen from your driveway, and you file a claim with your ...
If you carry new car replacement coverage on your policy, your insurance company would pay for a brand new car rather than a six-month-old car (which would have been comparable to the vehicle that ...
Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a ...
What full-coverage car insurance includes. A full-coverage auto insurance policy combines three key protections — liability, comprehensive and collision coverage — into one complete package.
Car insurance is required to drive legally in almost every state, so it’s important to maintain at least the state-required minimum car insurance policy even if you don’t think you need it.
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