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October 18, 2017

The Basics of GAP Insurance


logo2The Basics of GAP Insurance

GAP insurance is also referred to as Guaranteed Asset Protection or Guaranteed Auto Protection insurance. This type of insurance bridges the gap between the payment on the actual insurance policy and the car loan owed by the customer (i.e., the difference between what the insurance company plans to pay and what you owe on the purchased car). A car GAP insurance is necessary as it helps people with the payment of their deductibles.

Essence of GAP Insurance

It is a quintessential investment to avert unfortunate risks. In such a scenario, GAP insurance steps in and ensures that you’re well covered. The collision coverage isn’t usually enough to pay off an underlying loan, and that’s why it’s important to purchase a GAP insurance. Also, considering the established fact that a car depreciates the moment it is purchased, it implies that you probably owe more than the actual cost of the vehicle. For someone that didn’t buy a GAP insurance before the accident, they’re left with no choice but to keep making payments for the totaled car to cover the underlying debt. However, if you’re smart enough to purchase a GAP insurance before the unfortunate incident, GAP coverage sorts you out.

How much does it cost to obtain a GAP Insurance?

It isn’t expensive to purchase a GAP insurance provided you buy it directly from an insurance company. It is not advisable to go through an intermediary because you might end up paying multiples of the actual cost for a GAP coverage. After a careful thought about your need for a car coverage, if you’re not willing to pay for your vehicle immediately after purchase, then a GAP insurance can help you with the payment difference.

Is taking the risk worth it?

The question on the minds of most people is “what if my car is completely wrecked?” Well, while most people prefer to take the risk, the cost of the aftermath by far outweighs the cost of purchasing a GAP coverage premium before buying the vehicle. It’s not sensible to go through the pain of paying for an incurred loan when your car is in the garage. GAP insurance steps in and helps you with an existing loan even when the vehicle has been completely smashed and reduced to metal.

GAP insurance is entirely worth it if your car gets totally crushed. The purchase of GAP insurance cleans the slate for you, instead of having to go through the anguish of paying for an entirely wrecked vehicle. It covers the financial obligations of clients that are victims of an auto wreck or car theft. Once your previous debt is cleared, you can purchase a new or fairly used vehicle as a replacement for your condemned car. You can contact Good to go insurance for more clarification on this.

Where to Purchase GAP Insurance

GAP insurance can be bought from either a GAP insurance company or a car dealer, although it’s not advisable to purchase it from the latter. There are quite some reasons why it isn’t wise to buy a GAP insurance from a car dealer. Most car dealers provide car GAP insurance at very expensive rates, and unfortunately, most people don’t even realize they are being cheated. The majority of these car dealers charge over thrice of the regular rates of an insurance company for a GAP coverage.

Apart from the outrageous prices charged by the car dealers, the coverage provided by them will most probably not be with an insurer you have dealt with previously. This case poses a hindrance when it comes to discussing pressing matters that relate to your loan. Thus, it’s always preferable to work with a familiar insurance agent. In addition to that, most of these car dealers would proceed to tell you that GAP insurance is a limited or restricted offer, but the truth we make known to our clients at Good to go insurance is that it’s readily available at every point in time for those that need it.

A GAP insurance is available at a reduced price at Goodtogoinsurance, and this coverage is up for grabs if you’re truly in need of it. All you have to do is contact us and make the necessary inquiries about a GAP coverage. Good to go insurance will advise you on the basics of GAP insurance, and information about the price of the coverage that catches your interest. With Goodtogoinsurance, you’ll be astonished to find out that the price far below that of the car dealers.

GAP insurance is indeed a great deal for averting risks and covering the payment vacuum. It’s also a reasonable backup plan in case of an ill-fated car incident, and that’s the exact thing we offer you at Good to go insurance.

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