Do You Need Car GAP Insurance?
Have you ever complained about the way a car depreciates the second you drive it off the lot? That’s one reason to consider GAP insurance. So what exactly is GAP insurance, and why would you need it?
GAP stands for Guaranteed Asset Protection. GAP insurance will allow you to more easily purchase a replacement car if yours is written off. A standard car insurance policy will cover damages, but it won’t cover what the full value of the car was before you drove it off the lot. It’ll only cover its value for what it was just before it was harmed.
Before you purchase a GAP policy, check the terms of your premier auto insurance. Some auto policies allow for full replacement if you have to write off the vehicle in the first year of ownership (which is essentially what GAP does). Additionally, if you’re not buying a new car in the first place, the value to replace it may not be worth a GAP policy.
If you do choose to purchase a GAP policy, there are a few options:
- “Return To Invoice” – Makes up for the difference between what your auto insurer gives you for your write off and what you actually paid for the car.
- “Vehicle Replacement” – Makes up for the difference between what your auto insurer gives you for your write off and what a brand new replacement model would cost.
- “Return To Value” – Makes up for the difference between what your auto insurer gives you for the write off and the car’s actual value when you bought it, not just what you paid for it.
- “Finance” – Covers any outstanding car payments you have if you have to write off your car.
If you have more questions about your current policy or are interested in purchasing a new one in Tennesee, call one of our respected agents at InsureTN today, at 615-964-5250.