Whether new or pre-owned, as soon as you drive your newly purchased vehicle off the lot, it depreciates in value. If you were to have an accident and your vehicle was considered a total loss, most insurance policies would only reimburse you for their estimate of the fair market value of your vehicle, not what is owed on it. You likely financed tax and license fees, as well as any negative equity you may possibly have had on your previous vehicle. You will be responsible for paying any difference between your balance owed and their estimate. What you owe is of no consequence to the insurance company, they deal in hard numbers. By choosing GAP (Guaranteed Auto Protection) coverage, the difference is paid, protecting you against unexpected and significant future expense. Depending upon the GAP Company, many are designed to not only pay the difference, but also your deductible, up to $1000.00, in the event of a total loss. This type of coverage is called GAP+ which is what the Bachman Auto Group offers exclusively to their customers.
Under the GAP+ policy, you will be awarded the amount of the payable loss or the amount shown in the Maximum Benefit section of the Certificate of Insurance, plus the deductible up to $1000.00. The GAP+ coverage must be purchased at the time of the initial vehicle purchase and is limited to the amount owed over the amount of the primary insurance settlement, less any refunds on any added products.
Here are some additional benefits of GAP coverage:
- The gap deficiency between your vehicle’s unpaid finance balance and the settlement amount offered by your insurer is covered.
- New, used, and leased vehicles are all covered.
- Finance amounts up to $125,000 are covered.
- Financial losses up to $75,000 are covered, which includes up to $1,000 of your insurer’s physical damage deductible.
- Protection plan is available for up to 84 months.
- You are insured against owing money on a vehicle you can no longer drive.
- Coverage is fully refundable within 60 days.
- The peace of mind in knowing that, on top of an already trying situation, you will not be faced with paying out potentially thousands more to the lender just to maintain your good credit standing.
GAP insurance is a great option for many people, but is it right for you? When you sit down with any of the Business Managers at Bachman Auto Group, they will help you weigh your options and determine what is best based on your individual situation. We are here to educate and help you feel at ease when it’s time to make these crucial decisions. If you have more questions about GAP coverage, or any question regarding the purchase or finance of an automobile, please contact us and we will be happy to assist you.