Do You Need GAP Insurance?

Many consumers do not know that insurance companies pay out the fair-market value of an automobile if the vehicle has been totaled in an accident. Totaled means the cost of fixing the damage exceeds the current value of the car.

The check is made out in the amount of the fair-market value, which might not be enough to payoff the existing loan left on the vehicle. You are still responsible for paying it off, even though there is no longer a car. But there is a way to protect yourself. GAP Insurance, Guaranteed Asset Protection, can be bought as an extra benefit from the dealership. This protection will cover the gap between the pay-off check you receive and any balance that is still owed on the loan, in the event of an accident.

Come to Freeway Ford Truck Sales to look at and test drive some vehicles, and we’ll be happy to discuss the GAP program.

Categories: Finance

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