Guaranteed Asset Protection (GAP) is an insurance policy that a service provider sells when an individual purchases a new automobile. In the unfortunate event where the owner of the vehicle has to write off its value or report its theft to the appropriate authorities, this policy covers the difference between the amount the auto insurer is willing to pay out and initial price the owner paid for it.
People who own a new car are vulnerable to losing money when they have to write off the entire value of their vehicle even if their current car insurance policyis comprehensive because of depreciation. Moreover, most insurance service providers will compensate such owners with an amount, which is equivalent to the current market value of their automobile and not its actual price. However, GAP insurance policy helps these car owners to cover this shortfall in such circumstances.
Importance of comparing the quotes of various GAP Policies
While purchasing GAP insurance policies, potential car owners need to take into account a number of important things when it comes to comparing quotes for such policies. Moreover, it is imperative for such buyers to behave prudently and consider their best interests when it comes to scrutinising such quotes and searching for the right policy that caters to their needs. At the end of the day, they do not want to make a blunder of shopping for an auto insurance policy withoutunderstanding it.
Do not be old-fashioned…
Most car owners believe in the old-fashioned way of calling 3 or more auto insurance providers in their locality for comparing the quotes they give for such policies. However, the advent of the internet has made this process much easier. You can go online and check quotes. There is no need for you to physically visit their office and talk to them.
You should check the different GAP insurance quotes from companies. You should review their costs and the amount of coverage being offered. Take your time and do not rush through this process. If you do not understand certain terms and conditions, talk to your insurance advisor- he/she will guide you.
Clear myths about Gap insurance
It is important for you to be educated and aware of your policy coverage. Speaking to one company will not help you much. The policy coverage of two companies is never the same. You should compare gap insurance quotes to understand the policy coverage that will match your needs. There is a common misconception that gap insurance is only limited to new cars. This is not true. You may opt for gap insurance for a used car. It protects your car against depreciation over the passage of time.
Therefore, if you are going in for gap insurance, make sure you compare the different quotes provided by insurers. Thanks to online sources, you can do this easily from home. Read consumer reviews and understand your policy well. In case of doubts, speak to the insurance advisor and then sign on the dotted line!