Do You Need Gap Insurance?

GAP Insurance ( also known as Guaranteed Auto Protection or Guaranteed Asset Protection)  is insurance covers the difference between the actual cash value of a vehicle and the balance still owed on the financing .GAP coverage is mainly used on new and used small vehicles (cars and trucks) GAP insurance covers the amount on a loan that is the difference between the asset value and the amount covered by another insurance policy. Some GAP policies also cover the deductible.


Gap insurance is while vital for those who are leasing or financing and owe more than their car is worth, is a non-issue for other drivers.

If you've paid off enough of your car loan that you owe less than it's worth, you don't need gap insurance. In fact, if you have comprehensive and collision coverage, you may have all the insurance you need to pay off your loan.



Most auto insurance companies offer this coverage to consumers