Gap Protection
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What is Gap Protection (GAP Insurance):
Gap Protection, or GAP Insurance, is a financial safeguard for vehicle owners. It bridges the gap between the amount they owe on a car loan and the vehicle’s depreciated value in the event of a total loss. This means if the car is stolen or involved in a serious accident, the insurance will pay the remaining loan balance after the standard auto insurance payout.
F&I Products
Gap Protection is typically offered as part of the suite of Finance & Insurance (F&I) products available to vehicle buyers. These products can enhance a vehicle purchase by providing financial protection and peace of mind.
Resource Hubs:
Gap Protection is a valuable financial safeguard that can help vehicle owners avoid financial hardship in the event of a total loss. It’s typically offered as part of F&I products by auto dealers and financial institutions. It’s important for consumers to consider Gap Protection when financing a vehicle, especially if the loan amount exceeds the vehicle’s value.
Importance of Gap Coverage
Gap Protection is especially important for new car owners who might owe more on their loan than the vehicle is worth due to depreciation. It prevents them from being financially burdened by the loan amount remaining after a loss.
Coverage Levels:
Gap Protection varies in terms of coverage levels. The specifics depend on the provider, and it’s important for consumers to understand the terms and conditions of the policy.