How Do I Know if I Have GAP Insurance?

First thing’s first, what is GAP insurance? GAP insurance covers the “gap” between what you owe on your car and what it’s worth should you get in an accident. For example, if you took out a loan of $30,000, but your vehicle is valued at $27,000 at the time of an accident, you would get $27,000 from your primary insurance to cover the costs. If you have GAP insurance, this would get you the remaining $3,000 to cover additional costs from the accident. So, are you wondering, “do I have GAP insurance?” This answer might not be too obvious. Learn more from the Findlay Acura finance center today!

Do You Have GAP Insurance? 

GAP insurance isn’t a state-required form of coverage, unlike liability insurance. This coverage is optional. If you want to opt for GAP insurance, you’ll have to ask for it or seek it out and add it to your car insurance coverage. There is an exception, however. If you’re leasing a vehicle, your lease agreement may require you have GAP insurance in case of a total loss.

Check Your Lease Agreement for GAP Waiver Provision

You don’t have to buy GAP insurance. Some dealerships may ask you if you want to opt for this coverage as part of a deal or include a GAP Waiver Provision in their agreements with borrowers and lessees. This provision will cover the gap between the amount you owe and what’s paid out by the insurance company. In the end, if you’re unsure if you have GAP coverage, you can check with your lender to see if this was part of your agreement.

How to Purchase GAP Insurance 

Interested in buying GAP insurance? There are a few ways to do this. You can purchase it from your insurance provider, from an online provider that specializes in GAP coverage, or from the dealership where you purchased, or leased, your car. Make sure your consider the following before you buy GAP insurance:

• Check with your insurance company to see if GAP insurance is part of your regular car insurance policy. 
• Again, some finance and lease companies include GAP insurance in with your new vehicle or lease. If you don’t want GAP insurance, make sure you communicate this upfront. 
• Review your financing or leasing agreement to see if you already have GAP insurance. Ask if you’re not sure! 

Get Answers to Your Insurance Questions from Findlay Acura 

When the time comes to buy GAP insurance, trust the finance experts at Findlay Acura. If you’re still curious about the forms of coverage that are required by law or want to learn more about GAP insurance itself, contact our team! We’re more than happy to help you learn more about the coverage you need.