Who’s Got Your GAP?

Germany full-size luxury SUVProtecting Yourself With GAP Insurance

You have probably heard of a gap in coverage- the issue that arises when you do not have coverage for a specific instance in which you need it. But have you heard of GAP coverage? GAP insurance, or Guaranteed Asset Protection, is designed to protect people who are still paying off their vehicles. If you car is a total loss after an accident or is stolen, GAP insurance will generally cover the difference between the value of your car and the amount you still owe on it.

Why would you need GAP insurance coverage? If you were upside-down in debt on your vehicle, it would definitely be a good idea. Being upside-down in debt means that the amount that you owe to your lender is more than the amount you would get if you sold your car. You can determine your car’s value from a valuation guide like Kelley Blue Book or NADA Black Book.

You probably know that the second you drive a car off the lot, its value decreases rather significantly. If you get into an accident before you begin to make a dent in your car loan, what happens? Carrying GAP insurance is an ideal way to protect yourself from being stuck with a hefty bill after investing in your new or used vehicle. You can secure this kind of coverage from the dealer in most cases, but your auto insurance agent will be able to advise you on the best way to secure these policies for the most competitive prices.

You deserve to have an insurance professional advise you on when to carry unique protection like GAP insurance. Contact the insurance professionals at Mayer Insurance in Apple Valley, MN for all of your auto insurance needs. We are here to help you get the right policy at the right price.