How to Get GAP Insurance

GAP Insurance could be the most beneficial form of insurance you ever buy. Not having it can cost you nearly the same as the price you paid for your new car. Let’s say you go to an auto dealer and you spot this really beautiful new motor. You go for a test drive, you like it, you want to buy it. What happens next can determine the ultimate cost of your vehicle if it is stolen or totaled. Having GAP insurance is vital if you want to protect your pocket against any future loss of your vehicle.

Tools and Materials Needed:

• Internet
• Telephone
• Current Vehicle Details
• Current Insurance Policy Details
• Pen
• Paper
• Valid Form of Payment

Step 1 – Who Needs GAP Insurance?

First, decide whether you need GAP insurance. The purpose of GAP insurance is to cover your losses if the vehicle gets totaled. If you purchase or lease a new vehicle, what you have paid for it up to this point will be far less than the vehicle is worth. That is where GAP comes in. GAP insurance covers the deficit between the value of your vehicle and the money you still owe on it. If you currently have a deficit, you will undoubtedly be smart to get GAP insurance. GAP insurance is aptly named. It actually stands for Guaranteed Auto Protection, but it also covers the gap left in what you owe, versus what your car is worth.

Step 2 – Leasing

If you lease a vehicle it may already have GAP insurance in with the payment plan. Check before you spend extra money, whether you already have it or not. Also, be aware that a dealer can also provide a GAP insurance policy, but you are under no binding contract to take that insurance. You can decide on any insurance company.

Step 3 – Where Do you Get It?

You can look online for quotes and rates for GAP insurance. It is fast becoming more publicized than ever before and there are greater amounts of resources geared toward it than in previous years. Your current insurance company would be a good place to start. Give them a call and tell them you want a quote for GAP insurance coverage.

Step 4 – Details

Have your vehicle details ready. They will want to know how much you paid for it, how much you still owe on it and how old it is. They might also ask how much deposit you paid up front and your monthly installment payment total. They will want the make and model and age of the vehicle to offer a full quote.

Step 5 – Phone Around

If your current insurance provider offers you a quote which you feel is too high, don’t be obliged to accept it. Pick up the phone and call around or continue online checking and find a quote more suitable to your pocket. Remember that insurance can take up to one third of your annual income, so sending as little on it as possible will save you money.