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Bridging the GAP of Car Coverage
Buying a car is daunting enough, but a bunch of financial mumbo jumbo piled on top of it makes things even more confusing. However, there is one aspect to buying a car that people don’t always keep in mind: GAP coverage. If you’re wondering “What the heck is GAP coverage,” then you’re in the right place!
Understanding GAP Coverage
GAP stands for Guaranteed Asset Protection. Although it sounds like more financial jargon, GAP coverage is easy to understand once you break it down. It’s designed to cover the difference between what your insurance pays out and what you owe on your loan, in the case that your car is stolen or irreparably damaged in an accident. It’s not insurance, but a one-time fee that can be added to your loan – for less than $9 a month!
Benefits of GAP Coverage
You can end up saving a lot of money with GAP coverage. Not only that, but securing GAP coverage can bring you some peace of mind when buying a new car. Cars depreciate quickly, and the last thing you want after an accident is to be left paying for a car you no longer have.
To visualize how much GAP coverage can help you, let’s break it down with an example:
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- Loan Amount: $20,000
- Car’s Market Value: $18,000
- Insurance Payout: $18,000
- Remaining Loan Balance: $2,000
Interested in securing GAP coverage? Get your free online quote today.
This blog is intended for educational purposes only. For details about specific products or services, see credit union for details. For questions about investments, please consult your financial advisor.