what is Gap Insurance?

by Andrew01 » Mon May 11, 2015 11:34 am

What is gap insurance?

Total Comments: 4

Posted: Wed May 13, 2015 02:04 pm Post Subject:

G uaranteed A uto P rotection

Intended to cover the difference between payoff amount and Actual Cash Value in a total loss,

Posted: Mon Aug 24, 2015 04:44 pm Post Subject: GAP Defined

GAP is the difference between a car's actual cash value (ACV) and how much a driver owes on it. GAP insurance will cover the amount on a loan that is the difference between the asset value and the amount covered by another insurance policy in the event of a total loss

Posted: Mon Feb 08, 2016 10:38 am Post Subject:

Gap insurance covers the difference between the actual value of the vehicle and its current market value.

Posted: Mon Feb 15, 2016 06:30 am Post Subject:

Gap insurance covers the difference between the actual value of the vehicle and its current market value.

That's not correct. GAP coverage protects a borrower/lessee from financial loss if a financed/leased vehicle is determined to be a total loss as the result of a collision or other covered peril and the claim value is less than the remaining loan balance. Primary insurance + GAP coverage = 100% of the unpaid loan balance, which is very likely to be considerably higher than the difference between ACV and Market Value.

Add your comment

Image CAPTCHA
Enter the characters shown in the image.