Many of the firms that sell car insurance will pay out to some degree if your car is stolen or wrecked in an accident, but out there in the wide, wide, world there are lots of them who won’t pay you anything in the event of either of those things happening. So it pays for the car owner to be aware of a type of insurance called Guaranteed Auto Insurance, GAP for short, that will pay the difference between the correct value of your car and what you still have left to pay on it should it be stolen or in an accident. In these circumstances a driver with GAP insurance can be saved thousands of pounds if either of the above catastrophes occurs shortly after purchasing the vehicle.
There are many people who need to take out a GAP insurance plan. For example, if you have made a down payment of less than twenty percent of your cars actual value, then it would be wise for you to take out a Guaranteed Auto Protection plan. This will ensure that should your car be a total write off, or it is stolen, the insurer will meet the cost and you will have saved yourself a great deal of money by having GAP as the provider.
The three main types of Guaranteed Auto Protection insurance are as follows, the first. simply described as GAP Insurance will only be offered by someone holding a license that enables them to do so. A lot of large companies with familiar names will offer GAP insurance which makes it important that you check to see if you can get it from where you bought the car in the first place. Talk to the car dealer, get as much information as is available and ask if you can purchase Guaranteed Auto Protection Insurance from directly from them.
The next kind of Guaranteed Auto Protection is GAP Waiver. This type of insurance is set up between you and a lender or a dealer in the form of an agreement where the difference between the balance and the ACV is waived. In this sort of situation the waiver needs to have the backing from an insurance company and it is to be noted by the car owner that there may be some kind of interest charged on this kind of Guaranteed Auto Protection Insurance.
The third and final type of Guaranteed Auto Protection insurance is GAP Endorsement which is where your insurance company may be able to add an amendment to make sure that GAP is included in your insurance policy. It is not always possible to do this and will need to be discussed with your insurance policy provider, but is worth looking into if you feel that you need this kind of insurance.
One of the pitfalls you should know about before purchasing GAP insurance is if a car dealer tells you that you have to purchase GAP insurance when you buy your vehicle do not be persuaded. A wiser procedure is too purchase GAP after you have actually bought the car, possibly from a different provider, and be on the lookout for those who are not legitimate and have not the license to sell you Guaranteed Auto Protection insurance. That kind of person is rare, but they do exist, so take care to always buy your insurance form a reputable source.
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