What is GAP Auto Insurance?

What is a GAP auto insurance policy?  The abbreviation GAP actually stands for Guaranteed Auto Protection and it is an insurance policy that covers any negative equity for a car, boat, RV, or motorcycle.  You may be offered a GAP policy when you sign for your next auto loan, but before you turn it down, be sure to educate yourself on some of the positive benefits of a GAP policy.

This is a special safety insurance policy which is designed to cover any losses when there is a loss of a depreciating automobile.  The insurance policy will pay the difference in the amount you owe on your automobile minus what your regular insurance company has deemed to be market value of your vehicle and they will even cover up to $1,000 deductible, so there may be literally no money out of pocket when you have an automobile accident or have your vehicle stolen.

Many people who have purchased a GAP insurance policy feel it is invaluable when their vehicle was declared a total loss. For those who have never had to use the insurance policy it may seem like a waste of money, but in now days as cars are getting more and more expensive and many institutions are offering guaranteed financing without requiring a down payment, negative equity has become a serious issue.

GAP is a worthwhile investment as long as you’re financing the full purchase price of an asset, to prevent taking a risk of negative equity affecting your credit score. GAP is relatively inexpensive the costs is around $500-1000, included in your automobile’s monthly payments, which does very little to raise your payment. So when you’re making the decision about whether to get GAP, make sure you’re aware at the benefits before turning it down.

When you are ready to start shopping for your new vehicle, see your local St. Louis Cross keys Auto Dealer in Hazelwood and ask about our guaranteed financing program.