GAP Insurance Explained

GAP Insurance, or Guaranteed Asset Protection, is a benefit that can be purchased when you buy a car that will help protect you in the event of an accident. When there is an accident and the car is damaged beyond repair, the auto insurance will pay off fair-market value only. The compensation amount may not fully cover the amount owed on the car’s financing.

For example, after an accident, the insurance company states the car is worth $10,000 but the amount owed on the loan is $15,000. The GAP would make up for the "gap" and release a check for the additional $5,000. The GAP program can provide peace of mind knowing that you’ll always have adequate coverage.

Stop by Lithia Chrysler Jeep Dodge of Medford to learn more about the GAP auto insurance and our financing programs. Our knowledgeable and friendly team will be happy to answer any questions for you.

Categories: Finance

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