Guaranteed Asset Protection or GAP auto insurance coverage complements your existing auto insurance policy. GAP insurance will help you to get funds to pay off the outstanding amount on your car loan or lease. This is different from a GAP waiver which is an agreement between the creditor and the borrower.
Why should I get GAP auto insurance?
GAP auto insurance is one of the best ways to pay off your car loan or lease. The purpose of GAP insurance is to cover your vehicle when it is stolen or totaled and the amount you owe on your vehicle loan or lease is more than the current value of the vehicle.
What are the benefits of this insurance?
GAP insurance covers the “gap” between your loan amount and the depreciated value of the car. Imagine you got a $30,000 loan to buy your vehicle and a few months later your car gets totaled. Let’s say you still owe $27,000 on your auto loan. Your comprehensive or full auto insurance policy will pay for the vehicle value minus the deductible. As it turns out your vehicle is now only worth $25,000 because its value has depreciated over those few months. If you don’t have GAP insurance you will be responsible to pay the remaining $2,000 left on your loan. However, if you do have GAP insurance it will pick up the remaining $2,000 left over on your loan.
How can I get GAP insurance?
E&Y Agency LLC can help you get GAP insurance just give us a call at 248-362-1313 or fill the form below. The process of getting GAP insurance is not time consuming. There is usually no physical confirmation of your car as this is done by the insurance agency which takes the bill of sale as the reference. This insurance can be easily paid for on a monthly basis.
