Did you know that the majority of drivers on the road today drive vehicles that are borrowed or rented out? New cars are reliable, but also quite expensive for an ordinary person to pay in advance. Therefore, many choose to get a bank loan or lease through the dealer. However, what happens if the vehicle is involved in a bad accident, where the costs cost more than the value of the vehicle and it is declared as a total loss? This is where GAP or Guaranteed Asset Protection is a necessity because it protects you financially.
Even if you have just bought a brand new car, the value starts to drop as soon as you drive it from the plot. Also, if you do not have GAP insurance and your new vehicle is in total, you are not only out in a car but you also have a huge financial loss.
Why is this?
No matter what happens to the vehicle, you still owe money to the bank or dealer. So basically you would pay for a vehicle you do not own, plus pay for a new replacement vehicle.
You may think, "it will never happen to me" but believe it or not, we have seen this happen to some of our customers. A previous customer left us to get a cheaper insurance from one of our competitors and then found himself in an accident that we described above. The problem was that their cheaper car insurance did not actually fully cover the repair costs of their vehicles.
That's why we at Paradiso Insurance are not here to find the cheapest insurance for our customers, we are here to help them find the best coverage at the best price. This customer actually stopped calling us and asking for advice, but unfortunately there was nothing we could do. Their current insurance with our competitor lacked GAP insurance, which means that this driver not only had to pay property damage, but they also had to pay the rest of their car loan, even though the car had been declared total and was no longer in their property.
GAP coverage on your policy
Most car dealers offer the opportunity to get GAP coverage through them, but you can also get it through your current car insurance. This is because it is added in a similar way to other inscriptions on your insurance – such as glass cover, full collision or roadside assistance.
A total loss is an unfortunate thing that can happen to your vehicle, but at our insurance agency we make sure that you are always protected and completely covered. In addition, we take the time to learn about your options. Should something like this happen to you, you will not be stuck with a financial burden.
GAP insurance is a supplement that we recommend you use on any new or newer vehicle, so if there are any accidents, you are financially covered. If you have any questions about your car insurance coverage or if you are a beginner at Paradiso Insurance and would like a non-existent quote, please contact the office at 860-684-5270 or click here to send us a message. Our licensed agents are there to help you with all your insurance needs.