Do You Need GAP Insurance?
- February 13, 2019
- Doris Gray
From the moment a vehicle leaves the dealership, its value depreciates. The depreciation is more important when a vehicle is totaled in a car accident. You expect the insurance company to pay the amount you paid at the dealership, but the insurance company pays the vehicle’s market value, which is far less than anticipated. Additionally, you still owe the dealership auto payments for the totaled car. Guaranteed Auto Protection, or GAP, covers the difference between the Low Cost Insurance Chicago company’s amount and the outstanding auto payments.
GAP insurance is also beneficial for stolen vehicles. The stolen vehicle could return totaled, in battered condition, in one piece, or never return depending on what police investigators uncover. During the wait, you must continue to pay the auto payments. GAP insurance can cover the difference between what the insurance pays after filing a claim and the outstanding payments. Both situations keep you from paying for a stolen or non-operating vehicle.
GAP insurance sounds pleasant, but is it beneficial for my situation? GAP insurance will prove beneficial for drivers with the following auto situations.
• The vehicle has high depreciation rates
• You chose an auto payment loan lasting at least 4 years
• The down payment was less than 20% of the car’s price
• You transferred an outstanding auto balance to a new auto payment
• You drive over 15,000 miles a year
• There’s only one vehicle for the whole family
• You leased the vehicle
While not all companies offer GAP insurance, Accurate Auto Insurance will assist you with a company who will. In fact, some insurance providers offer GAP insurance without the need to switch. Our website at Accurateautoins.com connects you to all Low Cost Insurance Chicago companies in the area. Select GAP insurance from an insurance provider as car dealerships charge more while adding the insurance payment to monthly auto payments.