GAP Insurance and Why You Need It

Guaranteed Asset Protection or GAP insurance as it is commonly referred to, is an insurance product sold when you purchase a brand new automotive. A vehicle value usually depreciates after use, even if you’ve bought a comprehensive cover for it.

Gap Insurance covers the difference an insurer will pay over the current value of the car and the original buying price in case your vehicle is written off or stolen. So, do you need GAP Insurance?

Take a good example, your new car cost $12,000, and after three years we’ll estimate the value would be $4,800. Now this value isn’t enough or nearly equivalent to purchase a new car, here is where GAP steps in, by covering the difference your insurer will pay out to you. However, GAP insurance is not ideal if you possess an older but still in good condition car or a relatively inexpensive vehicle due to their slow rate of depreciation.

Visit us here at Scott Peterson Motors Inc in Fourche to learn more about Gap insurance.

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