GAP Insurance

In decades past, it was common for those purchasing cars to pay 1/3 of the cost of the car or more upfront as the down payment. However, as the ability to borrow and finance items has become easier and easier, people tend to pay less as a down payment and instead use loans to cover the rest of the vehicle’s price. Unfortunately, this can result in situations where car owners actually owe more on their car than it is worth due to the rapid depreciation of autos.

To help bridge the divide between the amount you owe and the actual cost of your car, you may wish to purchase GAP, or guaranteed auto protection, insurance. To learn more about your GAP coverage options, contact the knowledgeable Indianapolis auto insurance specialists from Insure on the Spot today at 1-888-972-SAVE.

How GAP Insurance Works

If you owe more for your car than it is actually worth, this can become a significant problem if you suffer in an accident that results in a total loss on the vehicle. Depending on your insurance coverage, or that of other drivers involved in the wreck, you may be reimbursed for the actual value of the vehicle, but this might be thousands of dollars less than what you owe. The same situation could occur if a driver’s car is stolen while they owe more money than the car is worth.

Due to the possibility of being upside-down on a car payment and later being in an accident, owners can now buy guaranteed auto protection plans, or GAP insurance. Such a plan can save drivers a lot of money. They typically cost a few hundred dollars, whereas drivers could lose thousands if they are in an accident and owe more on their vehicle than it is worth.

Contact Us

If you have questions about GAP insurance or any other aspect of car insurance, call the Indianapolis car insurance experts at Insure on the Spot today at 1-888-972-SAVE.