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Guaranteed Auto Protection (GAP) Car Insurance

Purchase Additional Car Protection Today

Illustration of a blue car on top of sheet of paper with an auto insurance policy

What Is Guaranteed Auto Protection (GAP) Insurance?

GAP car insurance has one function: to pay the difference between the value of your car and your coverage limits in the event that your car is stolen or totaled. GAP is additional optional coverage you can take out on top of your existing liability insurance, collision insurance, and/or comprehensive coverage.

What if the worst part of a car accident happened after the crash itself? Obviously, vehicular accidents are very scary on their own. Afterward, we rely on our car insurance to help repair or even replace our damaged vehicles.

Unfortunately, many drivers find out the hard way that their insurance won’t be paying out enough money to actually cover a totaled vehicle. This means you could actually end up still making payments on a car you no longer have. GAP insurance can help keep this from happening.

Those who lease or finance vehicles may have to take out GAP insurance. For everyone else, it is simply another insurance option. Is this option right for you?

Should You Purchase Guaranteed Auto Protection Insurance?

One reason you should consider purchasing GAP insurance is that the value of your car depreciates as soon as you drive it off the lot. So if you made a down payment of less than 20%, or perhaps no down payment at all, you may effectively have an “upside-down” loan where the principal of your loan is higher than its worth. If your car should get stolen or totaled, then you’re on the hook for some serious financial consequences.

With GAP insurance, you can rest assured you won’t be stuck making payments on a stolen or totaled car. Instead, you can easily pay off the remaining debt and go about getting a new vehicle for yourself.

Who Doesn’t Need GAP Insurance?

In short, those who have sufficient collision car insurance and put enough of a down payment on their car to match depreciation should be all right without GAP insurance. In other words, if you owe less than what your car is worth, then you probably don’t need to pay for GAP insurance.

Unlike state-required liability car insurance, GAP insurance is normally not a requirement.

How Much Does GAP Insurance Cost?

Generally, you should be able to find GAP insurance for about $20 extra per year. As with all car insurance prices, it depends on different factors, such as where you live, what kind of car you drive, your driving history and more. It’s worth noting that you’ll pay significantly more for GAP insurance if you buy it from the car dealership, rather than going through a car insurance company.

As always, shopping around to compare car insurance prices is advised.

Get the Best GAP Insurance Online Today!

Now you know more about what GAP insurance is and how it works. Do you know where you can find the best GAP insurance?

Here at Freeway Insurance, we provide drivers with all of the automobile insurance coverage they need. We can quickly and easily provide you with an online insurance quote Or feel free to give us a call at 800-777-5620. Finally, you can also visit us at an office near you.

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