GAP insurance. Don't Leave Home Without It.

GAP insurance, short for Guaranteed Auto Protection, is important optional coverage that car buyers can purchase in addition to standard coverage. GAP insurance covers the gap between what you owe on your vehicle and what it's actually worth.

GAP insurance is most commonly used after an accident where your vehicle is considered a total loss by your insurance company. In other words, your vehicle is damaged significantly to the point where it would cost your insurance company more to repair the vehicle than it would to replace it entirely. The insurance company would then issue you a check for the fair market value of the vehicle.

"negative equity" got me like ?? ?? #adulting

— (@adulting101how) September 25, 2017

Unfortunately, new vehicles depreciate the moment you drive them off the lot, and all vehicles continue to depreciate as they age and accumulate mileage. Due to depreciation, you'll likely owe more than what your vehicle is currently worth after a collision. Without GAP insurance, you can get stuck paying for a ruined car, weighing you down with extra, unwanted debt.

Interested in GAP insurance? Contact the finance center at Fiesta Ford in Indio, CA. Our experts can tell you everything you need to know.

Categories: Finance
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