0
So called gap insurance covers only the difference between the value of your vehicle and what you owe to the bank. It offers no other protections such as personal injury & liability, or collision.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
Is auto gap insurance necessary in Anchorage, AK?
Yes, auto gap insurance is necessary in Anchorage, AK
Is it necessary to have gap auto insurance in New York State?
In New York state it is necessary to have gap auto insurance. It is the seller's legal responsibility to include gap auto insurance in the cost of leasing the vehicle.
If you total your car after your insurance is canceled will GAP insurance still protect you?
NO,, GAP Insurance is supposed to pay the difference between what your Auto Policy paid and any remaining portion of your loss after the Auto Insurance Policy has paid it's maximum. If No Auto Insurance Policy is in Place providing comprehensive and collision coverage then your GAP Policy is Null and Void. GAP coverage only pays in conjunction with your Auto Insurance Policy. No Auto Insurance! No Gap Payment
How do you contact gap insurance?
Gap insurance is not the name of a company, it is a type of auto insurance related to leasing vehicles.
What if you get in a wreck but have failed to pay the insurance the past month the car is new and has gap insurance but the insurance is inactive because of failure to pay?
Your Not covered for anything at all. If the auto insurance is inactive, then so is the GAP coverage. "GAP Insurance" is Not "Auto Insurance", it is Finance Company Insurance. it will only pay the difference after your required Auto Insurance policy has paid it's maximum limits. If your auto insurance lapsed, then your GAP insurance has also lapsed automatically and concurrently. The GAP Insurance is Void in the absense of an auto insurance policy. Your on the hook for all monies owed to all parties involved with your finance note. Take Care
Does gap insurance cover theft?
Yes, But only if there is a gap in the final loss payment by the underlying auto insurance policy. If there is no underlying Auto Insurance theft coverage then the Gap Policy is null and void and no coverage would ensue.
How do you know if you have gap coverage on your car?
GAP Insurance is usually purchased at point of sale through Auto Dealerships and Automotive Finance Companies. You should look at the paperwork you received from your vehicle purchase. GAP Insurance is NOT Auto Insurance. It is Finance Company insurance.
Where can one purchase auto gap insurance?
Auto gap insurance is usually available from any decent motor insurance company. For assistance finding one, one could visit a website such as MoneySupermarket.
What policies does GAP Insurance offer?
GAP Insurance is not a specific company. GAP or Guaranteed Auto Protection is a type of insurance that covers the difference between the cash value of a vehicle and the balance still owed on financing for that vehicle.
Can i cancel the gap insurance from the dealer if you have insurance on it?
Usually you can cancel the Gap insurance anytime you want. You should be refunded money too depending on when you purchased it. Gap Insurance has nothing to do with Auto Insurance. Gap Insurance is just something that you purchase "usually from the dealer" to protect you if your upside down in your loan. Say you owe $5,000 on your vehicle, but it's only worth $3,000. If you have an accident and it's totaled out. Your insurance company is going to give you only what it's worth. So you would get $3,000 from your insurance company. The Gap insurance would cover the "GAP" between what is owed and what you got from the insurance company. Because your still going to owe the bank another $2,000 for a vehicle that is totaled out. Gap insurance can sometimes be difficult to cancel, and they sometimes they will give you a hard time about it.. But just read the paperwork that you got when you purchased your vehicle, usually it tells you on there how to cancel and if there are any fees involved. Just keep in mind that Gap Insurance is not Auto Insurance, so you would need to have Auto Insurance regardless if you have the Gap Insurance. Good Luck!
Gap insurance is from the auto loan or your insurance on the car?
GAP (guaranteed asset protection) auto insurance coverage is one the most necessary, yet least understood insurance products available to vehicle owners. It is generally purchased through the auto dealership or leasing company at the time of the initial purchase or lease.It's purpose is simple: If your car is totaled, gap insurance will cover the difference between what your insurance company says your car is worth (actual cash value) and what you still owe on your loan or lease.
Does gap insurance make sense compared to the number of times the policy will be needed?
No, it is much more cost effective to simply have your Auto Insurance limits adjusted to fully cover any potential losses. Gap Insurance is notoriously expensive. Gap coverage only kicks in after all other insurance limits have been exhausted and is very difficult to actually receive compensation after a loss. Gap insurance is usually pushed to consumers at the point of sale when purchasing a Vehicle at a dealership by sales people who are not schooled in insurance; it generates additional income for the auto dealership selling the gap coverage.
