Car insurance is important not just for protection in the event of an accident, but also for financial reasons in the event of a total loss. Find out what Gap insurance covers and whether it’s a good fit for you in this article.
What is Gap Insurance?
Gap insurance is a type of insurance that covers the difference between what you owe on a car and what the car is worth. For example, if you purchase a car and it has a value of $20,000 but you owe $30,000 on it, gap insurance would cover the $10,000 difference.
Gap insurance is most commonly used to cover the cost of buying a new car. If your old car is damaged or destroyed in an accident and you are unable to afford to replace it, gap insurance can help cover the cost of a new car.
Gap insurance can also be helpful if you have financed your car and need to get it fixed after an accident. Gap insurance will help cover the cost of your repairs.
How Gap Insurance Works
Gap insurance is a type of insurance that covers losses due to accidents, such as when your car is totaled. When you buy Gap insurance, the company will guarantee to pay for the full cost of repairs or replacement of your car, regardless of who was at fault. Gap insurance can be a good way to protect yourself from expensive car repairs or a total loss.
To find out if Gap insurance will cover your car, consult your policy details or speak with a customer service representative.
Is Gap Insurance Necessary?
If you’re considering buying car insurance, Gap may not be the best company to start with. Gap offers bare minimum coverage, and doesn’t offer any collision or comprehensive coverage. This could leave you financially vulnerable if your car is totaled. Check with several different companies to find the right policy for you.
Should I Get Gap Insurance?
If you have a car that’s worth less than $10,000, you may not need gap insurance. However, if your car is worth more than $10,000, you should consider buying gap insurance. Gap insurance protects you from damages that occur between the time your car is towed and when it’s sold or repaired.
Gap insurance can help cover the cost of repairs to your car if it’s damaged in an accident. You may also be eligible for benefits if your car is stolen or destroyed in a natural disaster. Make sure you understand the terms of your policy before buying it.
Conclusion
If you have a car that you own and drive, Gap insurance may cover your totaled car. In order to be covered, the policy must have GEICO as one of its providers. As long as you maintain full coverage on your other vehicles and meet other requirements set by your particular Gap policy, it is likely that your totaled car will also be covered. Keep in mind that if you are using any type of loan or credit card that has an auto insurance component, those policies will also likely cover your totaled car.