What is gap insurance
GAP Insurance is known as guaranteed
vehicle Protection or commodity Protection. Gap coverage is designed to provide auto owners with tranquility of mind that if
their auto is written off, the gap between the insurance pay-out and the volume
of money that they initially paid for their vehicle will be covered. This is
schematic to supplement your car coverage and give you extra financial protection if you need.
GAP insurance covers the variety between the exact cash value of a vehicle and the balance still owed on the financing (car loan, lease etc.). GAP coverage is mostly used on brand new and used autos small in size (cars) and heavy trucks.
Hope this will help you to understand “what is gap insurance”.
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