Auto Gap Insurance

● Do You Need Auto Gap Insurance ● What is Auto Gap Insurance ● FAQ's on Auto Gap Insurance ● Auto Loans

Why do you need Auto Gap Insurance? Your car's value (new or used) drops the minute you drive it off the lot and continues deprecation daily. Unfortunately, if someone steals or hits your car five minutes after you drive off the lot, your auto insurance only covers the actual cash value as determined by the dealers blue book. At this point, there's a good chance the insurance check isn't going to be enough to pay off your outstanding lease (or loan) balance. Your car depreciates about 20 percent as soon as you drive it off the lot, and it continues to depreciate dramatically for the first two or three years. (See the Auto Deprecation Calculator) If your car were to be stolen or totaled during this time, insurance would pay you the actual cash value (ACV) of your car. Your loan amount could be significantly more, however, leaving you on the hook for the difference.

GAP insurance was created for just such a situation.

Auto Financing terms are longer and often allow little or no money down, which means that cars are quickly losing their value in relation to the loan.

This loss in value, or GAP between the true value and what is owed on the vehicle can be very costly. The dramatic loss of your car's value, as soon as you drive it off the dealer's lot, can put an undue strain on your bank account if your car is totaled (or stolen!).

Auto gap insurance provides protection for you when a "gap" exists between the actual value of their vehicle and the amount of money owed to the bank or leasing company.

9 out of 10 people have not heard of auto gap insurance:

50% of the time the Insurance Company will not pay enough to satisfy the loan or lease balance on totaled or stolen cars

• One out of every three Americans suffers the total loss of a vehicle at some point during their lifetime.

• One out of every nineteen drivers will have a total loss of a new car (under two years old) due to collision

• One in every twenty drivers will experience an un-recovered theft.
  
  Are you at risk?
  
  Answer these 7 questions and determine if you might be one of the millions across the U.S. who would have to pay out of pocket. click here

Special Notice:
The purchase of GAP is voluntary and cannot be required as a condition of loan approval.

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