What is Gap Insurance?

What is Gap Insurance?

Gap Insurance sounds like something to be worried about.

Gaps can be dangerous. Gaps are something Evel Knievel might have jumped.

When talking about insurance, no one wants to have a gap in their coverage.

So, What is Gap Insurance?

If your vehicle is stolen or declared a “total-loss,” your auto insurance carrier will only pay what they determine is the actual cash value.

Actual cash value can be very different than what is owed.

The difference is known as: the gap. Gap insurance covers this amount.

Without gap insurance the lender will hold you responsible therefore look to you have pay the difference between the actual cash value and the amount left on the loan.

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

What’s the cost of Gap Insurance?

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 you know whether Gap insurance is included or not because it might be quite a shock to learn you don’t.

Is Gap coverage a good idea?

In conclusion, depending on the gap, it might be a great idea!

Give us a click or a call to find out more about Gap insurance & your Massachusetts auto policy!