Guaranteed asset protection insurance (or GAP Insurance) is an insurance coverage offered as a supplement to automobile insurancepolicies or auto loans. A GAP policy covers the difference between the value of a car (i.e., what the insurance company will typically pay) and what the borrower owes on the loan if the car is totaled or stolen. Because most cars lose value as soon as they're driven off the dealer's lot, and most car loans cover more than the purchase price of the vehicle, the "gap" between the two can be thousands of dollars.
Legally, GAP insurance is not the same as GAP waiver.[1] A GAP insurance policy is typically regarded by state regulators as an insurance product, and regulated as such. By contrast, GAP waiver is not considered insurance in most U.S. states, provided that the auto lender agrees to waive the difference between the outstanding loan amount and the value of the vehicle at the time it was totaled or stolen.
guaranteed, asset, protection, insurance, insurance, insurance, coverage, offered, supplement, automobile, insurance, policies, auto, loans, policy, covers, difference, between, value, what, insurance, company, will, typically, what, borrower, owes, loan, tota. Guaranteed asset protection insurance or GAP Insurance is an insurance coverage offered as a supplement to automobile insurance policies or auto loans A GAP policy covers the difference between the value of a car i e what the insurance company will typically pay and what the borrower owes on the loan if the car is totaled or stolen Because most cars lose value as soon as they re driven off the dealer s lot and most car loans cover more than the purchase price of the vehicle the gap between the two can be thousands of dollars Legally GAP insurance is not the same as GAP waiver 1 A GAP insurance policy is typically regarded by state regulators as an insurance product and regulated as such By contrast GAP waiver is not considered insurance in most U S states provided that the auto lender agrees to waive the difference between the outstanding loan amount and the value of the vehicle at the time it was totaled or stolen See also EditAsset protectionReferences Edit Survey of U S GAP Regulations PDF www elfaonline org Retrieved 2019 01 02 External links EditOffice of the Insurance Commissioner Washington State GAP Insurance This finance related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Guaranteed asset protection insurance amp oldid 1148079045, wikipedia, wiki, book, books, library,
