Guaranteed Auto Protection, GAP insurance, is a form of insurance you can purchase when you finance a vehicle at a dealership. The purpose of this insurance, known as GAP Insurance, is to cover the difference or “gap” you owe on your auto loan if your vehicle is totaled or stolen and not recovered.
Your insurance company will value your vehicle based on year and mileage. However, you may owe more on your loan than your car is worth; therefore, the insurance company payout will not cover your debt. There are a variety of reasons for this:
The GAP insurance will pay what your car insurance company does not in the event of a total loss, including your insurance deductible. What Gary LaPointe our finance specialist, recommends:
Remember to discuss GAP insurance at the time you make a purchase to avoid any problems down the road. Contact Gary LaPointe at Star Auto Sales in Meriden if you have any questions.