Frequently Asked Questions

What is GAP Insurance and how it comes in handy?

GAP Insurance is short for Guaranteed Auto Protection and it is a form of insurance that financial institutions or companies offer at the time of purchasing a new or used car. In some states car buyers are required to have this coverage due to state-by-state minimum car insurance requirements even though it is considered optional. It covers the remaining balance due when you are financing a vehicle and was in an accident. Gap coverage can be combined with your regular insurance policies when it comes to auto loans that have sixty months or longer terms.

Places to Acquire Gap Coverage

• Optional coverage from your F&I manager
• Through your local Insurance Provider

So if you are in an auto accident and your vehicle is deemed totaled without GAP, you will still be responsible for the amount due to pay off your vehicle. However, having the best amount of insurance coverage at the time of collision and your vehicle is destroyed; you will not be at fault to still pay off a totaled vehicle amount. You're financing companies or loan provider will take care of that. Guaranteed Auto Protection can be applied to used and new automobiles.

Some Rules and Regulation for GAP Insurance

• You can be allowed up to a $50,000 pay off max
• Insurance can be applied to 84 months or less auto loan terms

Having Gap insurance can really save you time and money if you are ever in an accident that causes your vehicle to be wrecked beyond repair. Keep this in mind when your finance manager asked if you want to add Guaranteed Auto Protection to you new or used auto. It might seem like an extra cost until you find yourself in a position where obtaining GAP Insurance is the best decision you could have ever made.