Guaranteed Asset Protection Insurance

Guaranteed Asset Protection Insurance

Guaranteed asset protection insurance (GAP insurance) insurance offered as a supplement to automobile insurance policies.  Guaranteed asset protection insurance is meant to bridge the gap between what car insurance will pay and the amount of loan you have left on a car and the cars actual present day value.  
Guaranteed asset protection insurance is used when a car, with an existing loan, is lost, stolen, damaged or accidentally damaged beyond repair.  Guaranteed asset protection insurance is mean to ease the consumers financial pains when they lose the car.  GAP insurance can also provide protection in cases where normal car insurance may not.

Questions About Guaranteed Asset Protection Insurance?

Vehicle values decline rapidly. That's why your insurance settlement, in the event of an accident may not cover your entire loan balance.  In these cases, where you still have an existing loan, GAP insurance may help.  New and used vehicles including motorcycle are normally eligible for GAP insurance.  However there are limits to how much will be paid.  As with all insurance issues, the costs and what can be covered varies from company to company, as do rates.  GAP Insurance is also not a replacement or substitute for care insurance, especially if you do not owe anything on the car.