Did you know that the majority of today’s drivers drive borrowed or leased vehicles on the road? New cars are reliable, but also quite expensive for the average person to prepay for. Hence, many choose to get a bank loan or lease through the dealership. However, what happens if the vehicle is involved in a serious accident in which the costs are more than the value of the vehicle and it is declared a total loss? This is where GAP or Guaranteed Asset Protection Insurance is a necessity as it protects you financially.
Even if you’ve just bought a brand new car, once you drive it out of the parking lot, its value starts to decline. If you don’t have CAP insurance and your new vehicle is complete, not only are you out of your car, but you also have a huge financial loss.
Why is this?
Regardless of what happens to the vehicle, you still owe money to the bank or dealer. So essentially you would be paying for a vehicle that you don’t own and a new replacement vehicle.
You might think, “this will never happen to me” but believe it or not, we’ve seen this happen with some of our customers. A previous customer of ours left to get cheaper insurance from one of our competitors and then found himself in an accident like the one described above. The problem was that their cheaper car insurance did not fully cover the cost of repairing their vehicle.
That’s why we’re here at Paradiso Insurance, not here to find the cheapest insurance for our clients, but to help them find the best coverage at the best price. This customer actually called us back for advice, but unfortunately there was nothing we could do. Their current policy with our competitor was missing GAP insurance, which meant that this driver not only had to pay for property damage, but also had to pay the rest of his car loan, even though the car had been declared full and was no longer in their possession.
GAP coverage of your policy
Most car dealerships offer the option of obtaining CAP coverage through them. However, you can also get this through your current car insurance. This is because it is added to your insurance policy similar to other endorsements – such as glass coverage, full collision, or roadside assistance.
Total loss is an unfortunate thing that can happen to your vehicle. However, at our insurance agency, we make sure that you are always protected and fully covered. We also take the time to inform you about your options. If this happened to you, you would not face any financial burden.
Take that away
GAP insurance is a supplement that we strongly recommend for any new or newer vehicle. So if an accident does occur, you are financially secure. If you have any questions about your coverage for your auto insurance, or if you are new to Paradiso Insurance and would like a no-obligation quote, please contact the office at 860-684-5270 or click here to send us a message. Our licensed agents are ready to assist you with all of your insurance needs.
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