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Is Gap the same as full coverage?
Contrary to popular belief, gap insurance coverage does not mean that your insurance provider pays you the full amount you originally paid for your car. Having gap insurance means your insurance provider may pay the financed amount you currently owe on your car at the time of a covered accident, minus your deductible.
Is Gap the same as insurance?
If the car is totaled in an accident or stolen, standard car insurance will only pay you the current value, so you'll lose money paying back the original loan or lease. Gap insurance covers this “gap” between the depreciated value of the car and the amount owed on the loan.
Can I shop around for gap insurance?
Dealers will often strongly suggest you buy it from them and may list a variety of reasons. However, as is the case with buying any type of insurance, it's best to shop around to make sure you're getting the best price and coverage for your needs.
Is Gap the same as insurance?
If the car is totaled in an accident or stolen, standard car insurance will only pay you the current value, so you'll lose money paying back the original loan or lease. Gap insurance covers this “gap” between the depreciated value of the car and the amount owed on the loan.
What is considered to be full coverage?
Many lenders, agents, and car dealerships describe "full coverage" auto insurance as liability plus comprehensive and collision. Your lender may use the term "full coverage," but that simply means they're requiring you to carry comprehensive and collision, plus anything your state mandates.
What is another name for gap insurance?
Gap insurance may also be called "loan/lease gap coverage." This type of coverage is only available if you're the original loan- or leaseholder on a new vehicle. Gap insurance helps pay the gap between the depreciated value of your car and what you still owe on the car.
What does gap stand for in insurance?
Gap insurance stands for Guaranteed Asset Protection insurance. It is an optional, add-on coverage that can help certain drivers cover the “gap” between the financed amount owed on their car and their car's actual cash value (ACV), in the event of a covered incident where their car is declared a total loss.