How to Find out if you have Gap Insurance? Check your insurance documents and financing documents from your dealership or lender to see if you have gap insurance. The best approach to finding out if you have gap insurance is to contact your automobile insurance company or your auto lender. Before you call, go over any insurance or financial papers you have on file.
Gap insurance can be obtained from your auto insurance company, car loan provider, or the dealership where you buy or lease your car, so it’s a good idea to check with all three to ensure that you’re not obtaining duplicate coverage.
Fortunately for you, Jerry’s speciality as the top-rated car insurance app and broker is assisting you in locating a cheap rate on the insurance coverage you require. Continue reading to find out how to find out if you have gap insurance. Also, find out what gap insurance is and why it’s often a smart idea to have it.
What is Gap Insurance?
Let’s start with the definition of GAP, which stands for Guaranteed Auto Protection. Gap insurance is a sort of insurance that helps you cover the difference between the amount you owe on your vehicle and its value if it is stolen or totalled.
Nowadays that we know where to purchase gap insurance, let’s talk about what it is and what it’s used for. Gap insurance protects you if the car you’re financing or leasing is worth less than what you still owe on it after an accident, often known as being upside-down on a car loan.
For example, suppose you acquired a car with a $40,000 loan, paid down only $10,000, and then totalled it. If an assessor concludes that your car was only worth $20,000 at the time of the accident, you could be issued a $20,000 payment after submitting an insurance claim.
The $10,000 remaining on your loan debt is the “gap” that gap insurance would cover. To summarise, if you carried gap insurance, you would be reimbursed for $30,000 rather than the vehicle’s current worth of $20,000, saving you $10,000 in the event of a mishap.
How to Find out if you have Gap Insurance?
1. Check your records
In the best-case situation, you should keep all of your car records in one safe place. If you’ve been doing so, you should be able to easily locate your vehicle insurance documentation that specifies your plan (search for your declarations page or proof of insurance) as well as your financing paperwork that details your automobile loan or lease.
You could also have access to electronic copies of this paperwork through your dealership’s and/or insurance company’s online accounts.
2. Make contact with your insurance company
If you’re having trouble finding information on gap insurance in your records, don’t be afraid to contact your insurer. They should be able to inform you what sorts of auto insurance coverage you have with your existing policy, as well as whether or not you have gap insurance.
You may also be able to email or speak with an insurance agent online through the website of your insurance provider. Most insurers will be able to verify your identity and give you information about your coverage in a secure manner.
3. Make contact with your dealership
You may have gap insurance even if it is not included in your insurance policy. It is frequently offered by dealerships and lenders in conjunction with leasing agreements and car loans.
You can contact the dealership where you purchased your automobile or the lender who financed your car purchase in the same way you contacted your insurance provider. They will keep track of whether or not you have gap insurance via them.