Gap insurance is optional coverage that helps cover any difference between what your insurance will pay likely your cars cash value and what you owe on your car loan.

Does gap insurance cover rentals. Rental Cars GAP insurance does not pay for rentals cars. However its not uncommon for lease contracts to have gap insurance included in them. A dealership may lump GAP into a loan or lease for this reason.

That is not the case. If someone leases a car their insurance deductibles are not usually covered by gap insurance. If you made less than a 20 percent down payment on your vehicle.

Contract hire GAP insurance. If a person chose to add an extended warranty to an auto loan gap insurance would not cover any extended warranty payments. If you put down money on the car loansuch as money from a trade-in or a leased carthen you might not be able to recover that in a total loss or claim.

Some policies have a deductible option so it is wise to check with a provider before signing a gap insurance policy. It only covers you when your car cannot be repaired because it was stolen or. GAP insurance doesnt cover any maintenance or repair costs nor can it be used to help cover your lease payments if youre having difficulty keeping up with them.

GAP insurance covers the difference between what you owe and what you are paid in an insurance claim. Loanlease gap coverage pays the difference between the actual cash value of your vehicle and the unpaid balance on your loan or lease if your vehicle is totaled due to a loss covered by your comprehensive or collision insurance. If a person chose to add an extended warranty to an auto loan gap insurance would not.

Your regular insurance policy may pay for a rental car in the event that you need a rental after a car accident. If a totaled car is in the shop gap insurance will not cover a rental cars cost. If youre upside down on your car loan it could be a good idea to buy gap insurance coverage.