RANCHO CUCAMONGA, CA, February 21, 2012
/24-7PressRelease/ -- A new resource published by the writers at OnlineAutoInsurance.com outlines the details of guaranteed asset protection (GAP) insurance and explains what types of consumers should seriously consider purchasing this optional coverage.
GAP protects drivers who have financed the purchase of a new auto from having to keep paying for the remaining balance on the loan if the car is stolen or totaled. It does this by covering the gap between the actual cash value of a car and the total outstanding loan amount when the vehicle's considered a total loss.
This is useful because insurers will only pay the actual cash value of an insured car in the event that it's a totaled or stolen. And if such an incident occurs within the first months after a purchase, the actual value could have dropped significantly while the majority of the loan still remains.
The availability of GAP will vary from state to state. In Washington, all insurers who write comprehensive and collision coverage are required to sell it to consumers if asked. On the other hand, only 30
Texas auto insurance companies are authorized to sell personal GAP coverage. In some cases, the dealership will actually offer the coverage.
The coverage can be most helpful when the car buyer has opted for a low or no down payment option, since these buyers will have the most to lose in the event of a total-loss situation.
According to Indiana regulators, the cost of GAP in that state ranges from $225 to $420, and consumers can expect to pay an average of about $380.
Source:
http://www.in.gov/
For more on this and other car insurance issues, head to
http://www.onlineautoinsurance.com/texas/ to get access to informative resource pages and a quote-comparison generator that can help users get a comprehensive view of their coverage options.
To read the full FAQ on GAP, follow the "Questions" link located at the top of any page on the site.
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