Often times, after a car wreck, our clients are dealing with a totaled vehicle that is worth less than what is owed. Gap insurance is supposed to take care of that problem.
Gap insurance, or (Guaranteed Auto Protection) is car insurance coverage that helps drivers cover the “gap” between what they owe on their car and the car’s actual cash value (ACV), in the event of an accident.
If you’re deciding whether or not to purchase gap insurance, there are specific cases in which it might be advised for you to purchase it. If you have put down less than a 20% down payment, have financed for 60 months or longer, leased a vehicle, or purchased a vehicle that depreciates faster than the average, purchase gap insurance along with your standard coverage.
Aside from covering the “gap” after a car wreck, gap insurance can also cover many other events that cause damage to your vehicle. For example, gap insurance may cover theft in the event your car is stolen and never returned. However, gap insurance does not cover deductible costs, engine failure, or any medical expenses due to injuries resulting from an accident.
While gap insurance is optional coverage, it is important to consider, especially if you meet any of the criteria discussed above. This important coverage will help prevent any stress over bills to pay after an automobile accident, where your car has been totaled.
If you have any questions about gap insurance or have questions regarding an automobile accident, call Kaiman & Crahan today.