What is Gap Insurance?

If a car is stolen or declared totaled, the auto insurance company will pay actual cash value for the car.

The actual cash value can be a lot different from what is owed on the vehicle.

The difference is “the gap.”

Gap insurance covers this amount.

Without gap insurance the lender will hold the individual responsible for paying the difference between the actual cash value and the amount left on the loan.

Many companies allow Gap insurance to be added to the Massachusetts personal auto policy.

The cost for Gap insurance can range from between +$25 annually to +$120.

Sometimes Gap insurance coverage is included in lease agreements. If leasing, make certain Gap insurance is included.

Is Gap coverage a good idea? Depending on the gap … it might be a great idea.

Give us a call to find out more about Gap insurance on your MA auto policy.