Why you need to carry GAP insurance

You've heard that your car depreciates significantly the minute you drive it off the lot, so what happens if you get in a major accident soon after you have bought your car and it winds up totaled? If you are financing your car, you could owe more for it than the insurance company will pay you.

A solution to this problem is GAP insurance. GAP stands for guaranteed asset protection. This type of insurance literally covers the "gap" between what you owe on your car and what your insurance company actually says your car is worth.

GAP insurance doesn't cost that much to carry, and you usually can get a policy from your dealer, making it easy and convenient to get.
If you are buying a car and using a loan to do so, carrying GAP insurance is a good idea. Talk to Advantage Dodge Ram Chrysler Jeep Fiat about GAP coverage when you purchase your next vehicle in Farmington.
Categories: Finance

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