What is GAP Insurance & What Does It Cover?

What is GAP insurance? What does it cover? “GAP” is simply an acronym for Guaranteed Asset Protection. This type of car insurance covers you for any difference between the value of your car and the balance you owe on its loan in the event it’s totaled. Typically, this type of coverage is sold as an add-on when buying a new car, so be sure to ask a finance specialist about it if you’re looking at buying a new vehicle at a Ryan Family Dealerships location near you.

What Else Does GAP Insurance Cover?

What does GAP protection cover other than the difference between your vehicle’s assessed residual value and the amount you owe on it? GAP insurance covers a lot more to protect your vehicle. While it doesn’t ever cover bodily injuries, mechanical repairs, or your deductible, it does cover:

• Nature damages (tornado, hurricane, flood, etc.)
• Theft
• Fire
• Vandalism
• Accidents

GAP protection is something you never know you’re going to need for sure, so many Bismarck drivers find it’s better to be on the safe side and choose this optional auto insurance coverage than forego it. 

Is GAP Insurance Worth It?

Just think about it: if you were to have to pay off your remaining car loan after it was determined that your car’s value didn’t cover it? Could you afford it? Are you willing to take that gamble?

If the answer is “No”, then having GAP insurance could be the difference between it being another day and it being a financially ruinous day for you. And since your vehicle depreciates the second you drive off the lot, this insurance will even cover the gap between the worth of your vehicle and what your insurance will cover if you get into an accident during this time.

How Can I Get GAP Insurance?

Some auto insurers offer gap insurance. Some do not. Usually, GAP insurance is offered by car dealerships when you speak to the F&I manager about add on coverages and warranties. If you decide to get covered, it’ll often cost as little as $20 a year plus the one-time fee at the time of purchase.

Learn More at Ryan Family Dealerships

Ready to learn more about GAP coverage and other F&I products our team can offer you? Contact us with questions! At Ryan Family Dealerships, we have multiple locations in Williston and Minot, ND and are here to help make your car buying and ownership experience spectacular.