Is Purchase of Guaranteed Auto Protection Insurance Right For Me?
One reason you should consider purchasing GAP insurance is that the value of your vehicle depreciates as soon as you drive it off the lot. So if you finance your ride and make a down payment of less than 20%, or perhaps no down payment at all, you may effectively have an “upside-down” loan where the principal of your loan is higher than its worth. If your ride should get stolen or declared a complete loss after an accident, then you’re on the hook for some serious financial consequences, fees and charges.
With this voluntary protection product, you can rest assured you won’t be stuck fulfilling your loan contract on a stolen or totaled car. Instead, you can easily pay off your lender and go about getting a new vehicle for yourself.
Some information to consider when deciding whether you need this protection include:
- If it is financed and new (or slightly used).
- You would not be able to pay off your loan balance in the event of a total loss.
- You are purchasing an expensive model that is a significant investment.
- You made a small down payment.
Also, keep in mind that if you drive a lot in a year, your vehicle will depreciate faster than normal. Guaranteed auto protection may be a good idea in that case.
Get GAP Insurance for Your Vehicle Today!
Now you know more about what GAP is and how it works. Do you know where you can find the best auto policy with it?
Here at Freeway, we provide drivers with all of the automobile coverage they need. We can quickly and easily provide you with an online insurance quote or feel free to give us a call at 800-777-5620. Finally, you can also visit us at an office near you.