The Protections Provided by GAP Insurance

GAP insurance (short for Guaranteed Auto Protection) is important optional coverage car owners can purchase in addition to standard coverage. In the case of an emergency, GAP insurance covers the difference between what you owe on your vehicle and what it's worth.

GAP insurance is most commonly used after an accident where your vehicle is considered a total loss by your insurance company. In other words, your vehicle is damaged to the point where it would cost your insurance company more to repair the vehicle than it would to replace it with something new. The insurance company would then issue you a check for the fair market value of the vehicle.

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— (@adulting101how) September 25, 2017

Unfortunately, if you own a new vehicle, the value of your car likely depreciated the moment you drove off the lot. Due to depreciation, you can wind up owing significantly more than what your vehicle is worth after a collision. With GAP insurance, that's not a concern anymore.

If you're interested in learning more about GAP insurance, get in touch with us at Donley Ford Lincoln in Mount Vernon, OH. Our finance staff can provide more information and educate you on your options for buying GAP insurance the next time you purchase a new car.

Categories: Finance


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