What is GAP insurance and do I need It?

What is GAP insurance and do I need It?

Gap insurance may also be called “loan/lease gap coverage.” This type of coverage is only available if you’re the original loan- or leaseholder on a new vehicle. Gap insurance helps pay the gap between the depreciated value of your car and what you still owe on the car. [On screen] Do I Need Loan or Lease Gap Coverage?

How much does GAP insurance pay for a totaled car?

Your collision coverage would pay your lender up to the totaled car’s depreciated value — say it’s worth $19,000. If you don’t have gap insurance, you would have to pay $1,000 out of your own pocket to settle your auto loan on the totaled car. If you have gap insurance, your insurer would help pay the $1,000.

Does Allstate offer GAP insurance?

Gap insurance isn’t just sold at car dealerships — many insurers, including Allstate, offer gap insurance as part of a car insurance policy. And, according to the III, buying gap coverage from an insurance company often costs less than buying it from a car dealership.

What is progressive GAP insurance?

Progressive offers loan or lease payoff coverage which is like gap insurance. The main difference is that the loan or lease payoff coverage is limited to no more than 25 percent of your vehicle’s value. Loan/lease payoff + Comprehensive + Collision.

What is Nissan security+plus gap coverage?

With Nissan Security+Plus GAP Coverage, We Pay That Difference. You are covered in case your vehicle is stolen or totaled. We even pay your deductible in most cases! GAP is real peace of mind* Whenever you are driving, you’ll enjoy the secure feeling knowing that you are protected by the Security+Plus GAP Protection Plan.

How does GAP insurance work with loan payoff?

When your loan amount is more than your vehicle is worth, gap insurance coverage pays the difference. For example, if you owe $25,000 on your loan and your car is only worth $20,000, your policy’s loan/lease payoff coverage covers the $5,000 gap, minus your deductible.