Did you know that the majority of drivers on the road today are driving vehicles that are loaned or leased? New cars are reliable, but also pretty expensive for the average person to pay up front. Therefore, many opt to get a bank loan or lease through the dealership. However, what happens if said vehicle is involved in a bad accident, where expenses cost more than the value of the vehicle and it’s declared a total loss? This is where GAP or Guaranteed Asset Protection insurance is a necessity because it protects you financially.
Even if you just purchased a brand new car, it’s value begins to depreciate as soon as you drive it off the lot. Additionally, if you don’t have GAP insurance and your new vehicle is totaled, not only are you out of a car, but you’re also out of a huge financial loss.
Why is this?
Regardless of what happens to the vehicle, you still owe money to the bank or dealership. So, essentially you’d be paying for a vehicle you don’t own, plus paying for a new replacement vehicle.
You might think, “that’ll never happen to me” but believe it or not, we’ve seen this occur with a few of our customers. One past customer of ours left to get cheaper insurance from one of our competitors, and then found themselves in an accident such as we described above. The problem was, their cheaper car insurance didn’t actually fully cover the cost of repairs on their vehicle.
That’s why here at Paradiso Insurance, we aren’t here to find the cheapest insurance for our customers, we are here to help them find the best coverage at the best rate. This customer actually ended up calling us back and asking for advice, but unfortunately there was nothing we could do. Their current policy with our competitor lacked GAP insurance, meaning this driver not only had to pay out property damages, they also had to pay the remainder of their car loan, even though the car had been declared totaled and was no longer in their possession.
GAP Coverage on Your Policy
Most car dealerships offer the option to get GAP coverage through them, however, you can also get it through your current auto insurance policy. This is because it’s added similarly to other endorsements on your insurance – like glass coverage, full collision, or roadside assistance.
A total loss is an unfortunate thing that can happen to your vehicle, but at our insurance agency, we make sure you’re always protected and fully covered. Plus, we take the time to educate you on your options. Therefore, if something like this were to happen to you, you won’t be stuck with a financial burden.
GAP insurance is an addition that we highly recommend having on any new or newer vehicle so if there are any accidents, you are financially covered. If you have any questions about your coverage on your auto insurance or if you’re new to Paradiso Insurance and would like a no-obligation quote, please contact the office at 860-684-5270 or click here to send us a message. Our licensed agents are standing by to assist you with all of your insurance needs.