How Do I Know If I Have GAP Insurance?

You have heard of auto insurance, but what is GAP insurance? GAP insurance helps you cover the “gap” between what you will owe on your vehicle and what it is worth should an accident occur. For example, if you took out a vehicle loan of $30,000, but it was valued at $27,000 at the time of the accident, you would receive $27,000 from your primary insurance carrier.

In this case, GAP insurance will cover the remaining $3,000, so you do not have to. As a result, you might ask, “How do I know if I have GAP insurance?” and “Do I have GAP insurance?” Learn more from the Sewell INEOS Grenadier finance team about what GAP insurance involves.

Do I Have GAP Insurance?

So, how do you know if you have GAP insurance? Unlike liability insurance, GAP insurance is not a state-required form of coverage for Dallas drivers. In many cases, if you want GAP insurance, you must seek it out and add this to your existing car insurance coverage. There is an exception to this. If you are leasing a vehicle, the lease agreement may require you to have GAP insurance in case of a total loss.

Check Your Lease Agreement For a GAP Waiver Provision

Do I have GAP insurance, and should I buy it for my vehicle? Whether financing or leasing your Fort Worth ride, do not assume you need to purchase GAP insurance. In some cases, car loan and leasing organizations will include a GAP Waiver Provision in all their agreements. This provision will cover the gap between the amount you owe and what is paid out by the insurance company.

“How do I know if I have GAP insurance?” If you are unsure about coverage, check with your lender or leasing company to determine if this provision is part of your agreement.

How to Purchase GAP Insurance

If you want to buy GAP insurance, you have several ways to do so. You can purchase it from your insurance provider or the dealership you are buying your vehicle from. Before making this decision, consider the following:

• Contact your insurance company to see if GAP insurance is part of your current car insurance policy.
• Some finance and lease companies will include GAP insurance with your new vehicle purchase or lease. If you do not want GAP insurance, communicate this with the dealership team.
• How do you know if you have gap insurance for your vehicle? Review your leasing or financing agreement to see if you have GAP insurance or call the lenders directly.

Get Answers to Your Insurance Questions from Sewell INEOS Grenadier

Now that you know the answer to “How do you know if you have GAP insurance?” it is time to determine if this coverage is right for your Frisco-area vehicle. Usually, GAP insurance is beneficial for lessees and drivers paying on their auto loans.

If you own your vehicle, and it is paid off, you will likely not need to purchase it. Contact Sewell INEOS Grenadier online or call to discuss GAP coverage on your new vehicle in Plano.