The Benefits of GAP Insurance

GAP Insurance, also known as Guaranteed Asset Protection Insurance, is an automotive insurance policy often purchased whenever you buy a new car from a dealer. Whenever you have the same car stolen or written off as a result of an accident, GAP Insurance will work to cover the difference between the value of the car (as in the amount of money you receive from the current car’s insurance policy as compensation) and the amount of money you used to purchase the car in the first place. Therefore, it is worth purchasing it.

Let us consider this example. The current value of your car is $14,000. However, you still owe the financial provider $20,000. When your car is stolen, the insurance company gives you $14,000. This means you are short by $6,000 even though you don’t have a car. You would get the $6,000 from GAP insurance if you purchased it. For more information, please pay us a visit at our dealership.
Categories: Finance


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