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.

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