What is GAP Insurance?

car insurance paperwork with car key
 

What is GAP insurance on a car? Guaranteed Asset Protection, or GAP, is a type of insurance that provides coverage for the difference between the value of a car and the balance still owed on it. If you’re curious about GAP insurance and what it covers, read on to learn more from the experts at our Richmond finance center

What Else Does GAP Insurance Cover?

What is GAP protection and what does it cover? In addition to covering the difference between the value of your car and what you still owe on it, GAP insurance goes a bit further. It doesn’t cover bodily injuries, mechanical repairs, or the deductible, but it does cover the following:

  • Theft
  • Fire
  • Vandalism
  • Accidents
  • Nature damages (tornado, hurricane, flood, etc.)

GAP insurance can provide added peace of mind by covering damages from the above-listed situations. You never know when you’ll need it, so it’s a good form of insurance to have for when/if the unexpected occurs. 

Is GAP Insurance Worth It?

Yes, GAP insurance is worth it. It’s not required, but it does offer extra protection for your investment if something unusual occurs, such as theft or fire. Your vehicle begins to depreciate as soon as you drive off the lot, and GAP insurance covers the “gap” between your car’s worth and what the insurance company will cover if you ever find yourself in an Fredricksburg accident or dealing with circumstances that are out of the ordinary. 

How Can I Get GAP Insurance?

Getting GAP insurance is easy. You can acquire it through your auto insurance provider via a dealership or a company that specializes in auto coverage. Coverage usually costs around $20 a year plus a one-time charge at the time of purchase. 

Get More Insurance Information from Whitten Brothers Automotive

Do you have additional questions about topics related to finance and insurance? Check out our car buying tips hub, where you can learn more about the car-buying process, insurance, and more. Contact us online or by phone at 804-378-0707 to speak with our friendly, knowledgeable team, or visit us today near Ashland! 

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