| GAP Auto Insurance Coverage |
Gap Insurance Buyer's Guide
2. Your current car insurance company
Although some car insurance companies have recently added optional gap insurance coverage to their
standard policies, many haven't. Instead they might offer something like Loan/Lease Payoff or New Car
Replacement Coverage.
Since personal auto insurance is regulated on a state by state basis and rates are legislated in some states it's
difficult to give an accurate price estimate.
Suffice it to say, it will be less expensive than Gap insurance purchased from a dealership - check with your
personal insurance agent for availability.
If your insurance company doesn't offer gap insurance it might be an opportune time to re-evaluate your vehicle
insurance coverage and try to find a better deal from another insurer.
3. Credit Unions
Many credit unions representing various employee groups now offer Gap insurance coverage for automobiles at
very reasonable rates. If you belong to a credit union ask their insurance specialist for more information.
4. Single Interest Insurance vendors
Single Interest Insurance, also known as Vendor Single Interest Insurance, is a policy that protects a lender's
Security Interest in a vehicle or automobile financed by an installment loan. Gap auto insurance is just such a
single interest insurance product.
Once again, premiums are regulated on a state by state basis, but in most states you can purchase gap
insurance for a one time premium of $299 - $399 which could be paid in installments if you purchase with a
credit card.
Although some car insurance companies have recently added optional gap insurance coverage to their
standard policies, many haven't. Instead they might offer something like Loan/Lease Payoff or New Car
Replacement Coverage.
Since personal auto insurance is regulated on a state by state basis and rates are legislated in some states it's
difficult to give an accurate price estimate.
Suffice it to say, it will be less expensive than Gap insurance purchased from a dealership - check with your
personal insurance agent for availability.
If your insurance company doesn't offer gap insurance it might be an opportune time to re-evaluate your vehicle
insurance coverage and try to find a better deal from another insurer.
3. Credit Unions
Many credit unions representing various employee groups now offer Gap insurance coverage for automobiles at
very reasonable rates. If you belong to a credit union ask their insurance specialist for more information.
4. Single Interest Insurance vendors
Single Interest Insurance, also known as Vendor Single Interest Insurance, is a policy that protects a lender's
Security Interest in a vehicle or automobile financed by an installment loan. Gap auto insurance is just such a
single interest insurance product.
Once again, premiums are regulated on a state by state basis, but in most states you can purchase gap
insurance for a one time premium of $299 - $399 which could be paid in installments if you purchase with a
credit card.
There are basically four options for obtaining GAP
auto insurance coverage.
1. Your car dealer
Buying gap insurance from a car dealer is the most
expensive option with an average cost of $578.
Gap insurance sold through a dealer is nothing
more than a high priced add on much like Scotch
Guarding your upholstery.
When the time comes to make a claim, a
representative of the dealership will most likely tell
you they would like to help, but it's out of their hands
and is now the insurer's responsibility.
auto insurance coverage.
1. Your car dealer
Buying gap insurance from a car dealer is the most
expensive option with an average cost of $578.
Gap insurance sold through a dealer is nothing
more than a high priced add on much like Scotch
Guarding your upholstery.
When the time comes to make a claim, a
representative of the dealership will most likely tell
you they would like to help, but it's out of their hands
and is now the insurer's responsibility.