How Do I Know If I Have GAP Insurance?

 
Taking out GAP insurance is a smart way to protect your investment on Bartow and Winter Haven streets. But what exactly is GAP insurance, and how do you know if you have GAP insurance? As the name suggests, GAP insurance covers the “gap” between what you owe on your vehicle and what your vehicle is actually worth following an accident. For example, if the amount of your loan is $30,000, but your car was valued at $27,000 at the time of the accident, your primary insurance only covers the $27,000 value. GAP insurance covers the remaining $3,000, so you’re not left covering the amount yourself. If you’re wondering, “How do I know if I have GAP insurance?” the answer may not be as obvious as you think. Learn more from the Kelley Automotive Group finance center.

Do I Have GAP Insurance?

How do you know if you have GAP insurance? While liability insurance is required by the state, GAP insurance is an optional cover that you opt in for or actively seek out. It’s an additional car insurance coverage option on top of your traditional insurance plan. In certain cases, GAP insurance is a requirement. If you’re leasing a vehicle, you may be required to have GAP insurance in the event of a total loss.

Checking If You Have a GAP Waiver Provision

In some cases, “How do I know if I have GAP insurance” can be answered by looking at your finance or lease agreement. Car loan and leasing companies may already have a GAP Waiver Provision in their agreements that is integrated into your monthly payments. That’s why it is important to check your financing or lease agreement. The dealer or car loan lender may include GAP insurance to cover the gap between the amount you owe and what’s paid out by the insurance company.

Purchasing GAP Insurance

While GAP coverage isn’t required, it can give you peace of mind when traveling around Auburndale. There are a few ways to secure GAP insurance for your vehicle: you can purchase it from your insurance provider, from an online insurer that specializes in GAP coverage, or from the dealership itself. Make sure to consider the following before purchasing a plan:

• Check the terms of your insurance coverage to ensure GAP insurance isn’t part of your regular insurance policy.
• If GAP insurance is automatically included in your new vehicle or lease and you don’t want coverage, consider whether GAP insurance is worth it and communicate your choice upfront.
• Review your financing or leasing agreement to see if you already have GAP insurance.

Learn About Your Car-Buying Options with Kelley Automotive Group!

Whether you’re asking, “Do I have GAP insurance?” or “Should I buy or lease?” the team at Kelley Automotive Group is ready to answer all your car-buying questions. Don’t hesitate to contact us if you have any questions, and have peace of mind during your trips around Lakeland. And be sure to check out our customer testimonials!