When you proceed to your car dealership company to finally get that new car, probably the last thing on your mind is the thought of what is going to happen when your brand new car or your “newly-bought” car gets totaled soon. Guaranteed Auto Protection, or simply known as GAP or GAP insurance, will take care of the gap in your standard insurance that you most likely mistake to be included in the coverage already. As a matter of fact, it shows from studies that 9 out of 10 car owners have no idea of what GAP insurance cover is. This is sad, because GAP could prove to be the most important coverage you could have purchased as a car owner. Therefore, you must familiarize yourself with what it is and how it works so that you can determine if taking it up would be beneficial to you.
Basically, GAP will provide coverage for the difference between the amount you owe on your car insurance and the value of your car’s worth. This makes it almost a must for those who are buying brand new cars since all cars begin to lose value as soon as it is used, meaning, as soon as you drive it off from the car dealership company.
GAP insurance would, most of the time, provide coverage for accidents and thefts but this does not apply to all policies so it would be a good idea to compare different plans before buying. The following are some of the most common and pressing questions regarding GAP insurance:
1.) Can I purchase GAP insurance for my older car?
You may or may not be able to get GAP insurance for your older car. Basically, GAP insurance is offered only to brand new cars. However, some insurers allow car owners to take it up even if their car is not brand new, depending on its model and year.
2.) I leased a car. Does it already have GAP insurance?
Most of the time, the lease already includes GAP but it is still best to read the terms carefully before leasing a car because there are still some lease policies that exclude GAP from their coverage.
3.) Are all car owners required by law to take up GAP insurance for their cars?
No. Some states require collision and comprehensive insurance and some lending companies that finance cars do necessitate full coverage insurance but this excludes GAP.
3.) Can I purchase GAP insurance from the car dealership company where I bought my car?
Yes. Most car dealership companies will make a lot of offers before you get to leave their lot. These offers would most probably include GAP insurance. However, before you decide to purchase it from your car dealership, make sure that your standard car insurance does not include GAP.
4.) How would I know if my present insurance company offers GAP?
You ask, of course. Before you decide to buy your new car, inquire about GAP insurance first with your current insurer because it might already be incorporated in your premium. If not, then you can choose to take up GAP for an additional but reasonable cost.
5.) If my current insurance provider does not offer GAP, where else can I buy it?
You can buy GAP insurance from your car dealership company, from another insurance provider, or from an online GAP insurance company.
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