Additional insurance taken out at the time of a normal insurance policy to covered the total value of the item being insured should it not be covered due to depreciation. For example, if Becky buys a car, the value or the car starts to depreciate immediately. If she was to have an accident and total loss the vehicle, only the depreciate value would be paid out. This could be less than the amount of that she owes on the car. If she had gap insurance, this would kick in and pay the remaining balance.
Related information about gap insurance:
- GAP Insurance - Wikipedia, the free encyclopedia
GAP Insurance is also known as Guaranteed Auto Protection or Guaranteed Asset Protection and as GAP within the North American financial industry.
- What is gap insurance?
What is gap insurance, and do you need it? This quick guide will help you decide if you need gap insurance when you buy or lease your next new car.
- Car gap insurance: Is it worth the cost?
Mar 17, 2010 ... Not sure if car gap insurance is for you? Let Bankrate.com help you decide if your auto insurance covers your assets.
- HowStuffWorks "How does gap insurance work when a car is totaled?"
How does GAP insurance work when a car is totaled? Read about the potential benefits of GAP insurance at HowStuffWorks.
- Gap Insurance: What Is it and Who Needs It? - Progressive
Sep 1, 2009 ... When you buy a new car, you may be asked if you want gap insurance. Find out all the benefits of gap insurance—and understand how ...
- Gap Insurance: How It Impacts Your Car Loan or Lease - Edmunds ...
Apr 4, 2005 ... Learn how gap insurance impacts your car loan or lease with Edmunds - Auto Finance tips.
- Gap Insurance by Driver Select
Gap Insurance for your new or used car, truck or SUV. Our plan includes the gap coverage, deductible coverage, extra special theft benefits, roadside assistance ...
- Gap Insurance for Your Car: Do You Need It? | Nolo.com
Learn the basics of gap insurance -- what it is, who needs it,and how to buy it.