If you have a leased or financed vehicle, is it worth it to purchase gap insurance along with your auto insurance policy?
Guaranteed Auto Protection (GAP) insurance covers the difference between the actual cash value of a vehicle and the balance still owed on the financing (loan or lease) at the time of a total loss. This is a very important coverage to have and can save you thousands of dollars should you have a total loss of the vehicle.
As with many car leases and financing agreements, gap insurance may or may not be built into the agreement. Be sure to check your agreement and contact your insurance agent before you purchase gap insurance coverage at the dealership. It is possible that your current auto insurance carrier may be able to provide this coverage at a more economical rate than the dealer can offer.
To protect you, let’s be sure a proper auto insurance policy is in place. For all of your insurance coverage questions, please contact your team at Hoffman Brown Company in Sherman Oaks, California. We are happy to be of service!