What is Gap Insurance?

Insurance contract
What is GAP insurance on a car? Whether you buy or lease, GAP insurance provides financial protection if your new car is totaled while you owe more than its actual value. Because cars depreciate most rapidly during the first few months of ownership, there’s likely a gap between the amount you owe and your vehicle’s actual current worth. Without GAP insurance to pick up the slack, you’ll owe that difference out-of-pocket.

Navigating the auto insurance landscape is no easy task. With so many insurance types and coverage options out there, how do you know which ones you will (or won’t) need? Read below for more about GAP insurance coverage from Allen Samuels Direct, and then decide if it makes sense for you.

Do I Need GAP Insurance?

If your vehicle is badly damaged or totaled, your standard insurance will pay the current market value of your vehicle. The amount paid by standard insurance is how much your vehicle is worth — not how much you actually owe. GAP insurance exists to cover thaat coverage gap between what you owe on your loan and your vehicle’s current market value. Below, we’ll look at how GAP insurance provides you with extra security on the Ft Worth roads.

What is GAP Protection Coverage?

GAP insurance covers the difference between your vehicle value and what you owe. Any damage due to the following causes will be covered under your GAP insurance:

  • Theft
  • Fire
  • Vandalism
  • Storms
  • Other natural disasters

Who Should Get GAP Insurance?

GAP insurance will benefit some Ft Worth drives more than others. Most dealerships require you to purchase GAP insurance if you lease your car. You should also consider the benefits of GAP insurance if:

  • Negative equity from an old car loan was rolled over into the new loan.
  • Your vehicle is one that depreciates faster than the average.
  • You financed your vehicle for 60 months or longer.
  • Your down payment was less than 20%.
Insurance Agent Examining Car After Accident

Explore Auto Coverage Options with Allen Samuels Direct!

Questions about comprehensive or collision insurance? The Allen Samuels Direct finance center team is happy to answer any questions about auto financing and insurance, or help you estimate your monthly payments. Contact us to get started today!

More from Allen Samuels Direct

  • What is the Towing Capacity of a Ford F-150?

      The Ford F-150 is iconic for a reason: depending on which model year you choose, this powerhouse truck can offer best-in-class towing capacity at a max of 13,200 pounds, in addition to an exciting collection of performance specs that are sure to make this pickup the perfect choice for your Grapevine workload.  Used Trucks…

  • Jeep Wrangler Interior

    Off-road enthusiasts in Euless know that the Jeep Wrangler was made for the outdoors. Whether you’re driving on Grapevine streets or going on an off-roading adventure, the Jeep Wrangler has the power, the capability, and the interior comfort and cargo space to get you there. Learn more about the interior of the Jeep Wrangler with…

  • Mitsubishi Outlander Specs

      If you’re looking for a family-friendly vehicle in Euless that also has a distinctive sense of style, the Mitsubishi outlander is the SUV for you! Coming in several trim levels – each with their own unique features – and an impressive suite of Mitsubishi Outlander specs, this versatile SUV has everything you need at…

Saved
Saved Vehicles ×

SAVED VEHICLES

You don't have any saved vehicles!

Look for this link on your favorites:

Save

Once you've saved some vehicles, you can view them here at any time.

Contact
Contact Us ×

(817) 918-9200

Call Now

1661 Airport Freeway • Euless, TX 76040

Get Directions

Today's Hours:

Open Today! Sales: 9am-6pm

Service: Closed

Allen Samuels Direct

1661 Airport Freeway Euless, TX

Phone: (817) 918-9200

http://maps.google.com/?q=1661%20Airport%20Freeway%2C%20Euless%2C%20TX%2076

Sales

Phone: (817) 918-9200

1661 Airport Freeway Euless, TX

Service

Phone: (817) 918-9203

1661 Airport Freeway Euless, TX
32.8365051 -97.1091064
Allen Samuels Direct 32.8365051, -97.1091064.