How GAP Insurance Gives You An Added Layer Of Protection

You get into a car accident that leaves your car totaled. Your insurance company paid you $20,000, which was the fair market value of the vehicle. You had a loan out for $25,000. It turns out the compensation from your insurance company is not enough to cover the cost of the loan you took out. You are now responsible for paying off an additional $5,000 off the loan from your own pocket.

If you had GAP insurance, you would not be responsible for the $5,000 that you owe on your loan after getting compensation. GAP insurance policies cover the gap between what you get compensated for from your insurance company and the amount of money you owe on the loan.

It is a good thing to have if you think you might be in a situation similar to this. Contact a representative at Kuhio Nissan if you are interested in adding a GAP insurance policy on your vehicle.

Categories: Finance

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