CenoDreata Car News Blog

You may be aware that many companies selling car insurance will pay out if your car is stolen or wrecked through no fault of your own, but what you may not know is that some insurance companies will not pay anything if either of those things happen, and it is advisable to be aware that there is a type of car insurance called Guaranteed Auto Protection known as GAP. In simple terms GAP is a type of insurance that will pay the difference between the true value of your car, and what you still have left to pay on it in the event of it being stolen, or damaged in an accident. It may be hard to believe but GAP insurance can save you thousands of pounds under the circumstances described above.

A lot of people would be wise to take out a GAP insurance plan, especially if they have. paid less than twenty percent of the car’s true value as a deposit. It will ensure that if your car is stolen or wrecked you will be covered because the insurer will meet the cost and save you a lot of money in the process.

Three main types of GAP are available. The first named just that, Guaranteed Auto Protection insurance which can only be offered by someone with a license to do so. Many big companies that are household names can offer GAP insurance, so it is worth finding out if it is available from the place where you bought the car originally. This can be done by talking to the car dealer at length to ascertain if you can purchase GAP insurance directly from him.

GAP Waiver is the next choice of Guaranteed Auto Protection. It is a kind of insurance agreement between yourself and a lender or a dealer. In this instance the difference between the balance and the ACV is waived as long as the waiver has the backing of an insurance provider In this instance it is important to be aware that some sort of interest will be charged on this type of Guaranteed Auto Protection insurance.

The last of the main types of Guaranteed Auto Protection insurance is GAP Endorsement which is where your insurance company could add an amendment to your policy to make sure that GAP is part of it. It is something that will have to be discussed between the two of you and be aware that it is not always possible to do this, yet it is worth discussing if you are of the opinion that you need Guaranteed Auto Protection Insurance.

There are a few things that you should be aware of before you jump straight into purchasing GAP insurance. Firstly, if a car dealer tells you that you must purchase GAP insurance with your vehicle, do not be persuaded. It is far better to purchase GAP insurance once you have actually bought your car, possibly from a different provider. Also, watch out for people who are not legitimate and are not licensed to sell you Guaranteed Auto Protection insurance. Although there are very few people like this, it still happens, so make sure that you are buying your insurance from a reputable provider.

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