What Exactly is GAP Insurance?
GAP Insurance 101 isn't exactly taught in college, so many people are unfamiliar with exactly how it works. When you get into an accident and still owe a large amount on your vehicle, that's where gap insurance factors into the equation.
What Does GAP Insurance Mean?The "GAP" in GAP Insurance stands for "Guaranteed Auto Protection".
Although a little confusing, GAP insurance can really come in handy. Many people wrongfully assume that their current insurance will cover all the costs associated with an accident, that just isn't the case.
What Does GAP Insurance Cover?
Collision and comprehensive insurance plans will usually cover the vehicle up to its estimated worth at the time of the accident. Because vehicles depreciate quickly, you can imagine that a gap between the amount owed and the covered amount could get pretty high.
The dollar amount that GAP insurance will cover has limits, but your insurance provider can outline your coverage. We're here to help answer any questions you may have about GAP insurance requirements for new leases or purchases.
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