GAP insurance protects your new car

GAP insurance is a type of insurance policy that protects you if you have a newer, financed car and get into an accident that totals it. In such a situation, your regular auto insurance may not cover the full amount you owe on your car.

GAP stands for "guaranteed asset protection," but it also has a double meaning because it covers the "gap" between what you owe on your car and what an insurance company says it is worth. Because new cars depreciate quickly and you don't pay much toward the principal in the first few months of loan payments, an accident that totals your car in the first year you own it could easily leave you owing more than the insurance company pays out.

GAP insurance will prevent that from happening, and it does not cost much to carry. You can get GAP insurance for your new car from Brian Hoskins Ford in Coatesville.
Categories: Finance


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