The Importance of GAP Insurance

GAP insurance is a type of auto insurance policy that protects new-car buyers from suffering the loss of depreciation whenever they purchase a new car. According to recent statistics, new cars can depreciate by more than 60 percent after just three years of operation. GAP Insurance protects you from the losses that often arise when the compensation amount received from the insurance company as a result of your loss does not cover you on the lease agreement or vehicle financing solutions agreement. This is a situation that often arises when the car loan balance is greater than the book value of the car.

GAP Insurance comes in to settle the balance for you even when you don’t have the car. GAP Insurance bridges the gap between what you pay and what the insurance policy pays when the car is totaled. If you would like to get more information about GAP Insurance, we invite you to visit our dealership today.
Categories: Finance
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