Understanding Gap Insurance: How to Determine if You Have Coverage
Have you got gap insurance? If you want to know the answer, hopefully you read this before your next car crash.Gap (for ‘guaranteed asset protection’) insurance will be your financial guardian angel if your motorsports misadventure totals your car or your tearaway teen drinks and drives it away. But if he gets caught, even his innocent buddies could be in trouble.
To check whether you have gap insurance, first check your auto insurance policy. Flip through the pages and look for a note about gap coverage or loan/lease coverage.
If it’s not referenced anywhere on your policy, ask your insurance firm! Call them up or shoot them a missive.
The second option is to call the bank that gave you your car loan. They might have included gap insurance as part of the deal to make your loan.
And do you know which part of the car loan document you should scrutinise? That’s right; when you got your vehicle, you might have also gotten gap insurance as part of your car loan without your knowledge.
Find you’ve been sent down a rabbit hole? You’re not alone. Many of us aren’t sure whether we do or don’t have gap insurance. But a quick check could save you thousands.
If you find that you don’t have gap insurance, don’t stress! You can more often than not add it to your current policy for a minuscule premium.
So basically, gap insurance is just another form of protection for your wallet. You don’t want to get stuck without a car just because you can’t afford a new one!
In sum, if you want to know whether or not you have gap insurance, as long as you know the specifics of your auto policy you should be fine. Double check and enjoy your journey; you’re on the road with a great amount of insurance coverage!
