Why You Need GAP Insurance Policy


GAP Insurance, or Guaranteed Asset Protection Insurance, is a policy that is often purchased when you buy or lease a new car from a dealer. Whenever you have your car written off due to an accident or because it is stolen, you will have the difference between the money you get from the car’s insurance policy as compensation and the initial amount you used to purchase the car paid by GAP Insurance. Therefore, it is a wise decision to purchase GAP Insurance.

Let us take an example. For instance, your car may be worth $15,000 according to the book value. However, you still owe the financial agency a total of $20,000. When your car is stolen or is written off completely as a result of an accident, your car insurance policy will give you $15,000. You will still be $5,000 short even if you don’t have the car. If you purchased GAP Insurance, it would give you the $5,000. For more information, please visit our dealership.
Categories: Finance
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