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What is Auto Gap Insurance & Do You need it?

You may not know about auto insurance, but do you know about auto gap insurance?

As soon as the wheels of your car drive off the lot and touch street pavement, the value of your car is dwarfed by the loan you took out to purchase that car (unless you made a substantial down-payment). Auto gap insurance covers the difference between your loan and the current value of your car. Learn the factors that you should consider when it comes to auto gap insurance.

  • If you lease your car, the cost of the insurance is generally added to your lease payments.
  • Gap insurance will not be provided if you don’t already have a primary insurance policy.
  • State laws and insurance guidelines differ from state to state for used, refinanced, or leased SUVs if it happened within the year.
  • Gap insurance isn’t proof of insurance if you need to register or renew registration at the DMV.
  • Gap insurance cannot be transferred from your old vehicle to your new vehicle.
  • Late fees will not be tolerated by gap insurance. It won’t provide a payout for those late payments. Deferred payments won’t be covered either.

Gap insurance can help cover your new car if your loan is currently a larger amount than the value of your car. Take a moment to request a free online quote from Fox Insurance Agency in Beaverton, OR. If you have questions or would like more information, call our office during regular business hours.