When purchasing a vehicle, it's important to consider your insurance options to ensure you are fully protected. One type of coverage to consider is Guaranteed Asset Protection or GAP coverage. GAP coverage can provide valuable peace of mind in the event your vehicle is totaled or stolen.
What is GAP Coverage?
GAP coverage is an optional insurance policy that covers the "gap" between the amount you owe on your vehicle and the amount your regular auto insurance will pay out if your vehicle is totaled or stolen. Without GAP coverage, you could be left owing thousands of dollars on a vehicle you no longer have.
Factors to Consider
When choosing GAP coverage, there are a few key factors to keep in mind:
- The type of vehicle you are purchasing (new vs. used)
- The length of your auto loan
- Your auto insurance deductible amount
- Whether you are financing or leasing your vehicle