{"id":8656,"date":"2024-07-01T19:06:56","date_gmt":"2024-07-01T19:06:56","guid":{"rendered":"https:\/\/www.acceptanceinsurance.com\/?page_id=8656"},"modified":"2024-07-01T19:06:57","modified_gmt":"2024-07-01T19:06:57","slug":"cheap-guaranteed-auto-protection-bridge-the-gap","status":"publish","type":"page","link":"https:\/\/www.acceptanceinsurance.com\/our-products\/auto-insurance\/cheap-guaranteed-auto-protection-bridge-the-gap\/","title":{"rendered":"Cheap Guaranteed Auto Protection: Bridge the GAP"},"content":{"rendered":"
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What is Guaranteed Auto Protection (GAP) Insurance?<\/h2>\n
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GAP is a lifesaver for people whose relatively new vehicle is declared a total loss. It helps protect you financially if your car has depreciated to a value less than what you owe. Many people do not understand how quickly this happens. As soon as you drive your new car off the lot, it begins to lose value rapidly. In fact, many people who finance their vehicle become \u201cupside down\u201d in the first year. This means they owe more than their now used vehicle is worth. If your vehicle is declared a total loss in a covered event, your insurance company will pay you the actual cash value (ACV) \u2014 which may be less than what you owe.<\/p>\n

This insurance bridges the \u201cgap\u201d between the ACV and what you owe. It is not a required\u00a0car insurance<\/a>, but is considered a beneficial coverage add-on. It is only available for newer vehicles less than one year old. If you recently purchased a car, speak to an experienced Acceptance agent to understand GAP insurance.<\/p>\n <\/div>\n <\/div>\n

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How Does it Work?<\/h2>\n
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GAP works by paying off your financed loan if your car is declared a total loss, such as what might happen in severe weather<\/a>. This coverage is only available for new or slightly used cars that are less than a year old. You can cancel it once the amount you owe on your car is less than its market value.<\/p>\n

Since your car can depreciate up to 20% in the first year (and more if you drive a lot), the value of your car on the market can be much less than the amount you financed. Here\u2019s an example of how that works and how GAP can step in to save the day:<\/p>\n