In this series we will be discussing Gap Insurance and the difference between what most policyholders assume is true, and what is actual insurance fact. Today the topic of Gap Insurance is not a new one to us.
As you will recall from our article about the Myths of Full Coverage, Gap Insurance is commonly assumed to be in a brand new car purchase “full coverage” policy. We explained that “the truth is that unless you request it, it may not be. A great agent like the ones at EINSURE will offer this coverage, but don’t leave it to chance. Gap insurance will make up the difference between what your car is worth, and what you still owe on it, which is likely a lot for the first several months after a vehicle purchase.”
This type of insurance can be added to your collision insurance policy and if your vehicle is ever considered a total loss it will cover the difference between the asset value and what you still owe on the financed car loan or lease. Some policies may even cover your deductible, so be sure to check with your insurance agent.
What Does GAP mean?
GAP stands for Guaranteed Auto Protection or Guaranteed Asset Protection, and it does just that, it covers the total cost of this asset rather than the total value. You can gain this insurance policy through your Las Vegas EINSURE insurance broker or agent. Be careful to understand if there are limits in terms of total value or loan terms. Your finance company might require that you have GAP insurance before you drive a new vehicle home, so make sure to contact your agent before you make your new vehicle purchase.
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