GAP insurance is also known as Guaranteed Auto Protection or Guaranteed Asset Protection. It is suitable for those who earn stable incomes and are able spend their income freely without being bothered.
A person these days are capable of having the benefit of all the services and goods without making any payment at the time of transaction that is today’s market following trends like credit payment.
Enjoy any product or services and paying for it later may sound interesting but you might be totally in debt to its seller if his/her services or product faces any damaged.
To avoid such situation you may acquire a GAP insurance policy that gives an extra financial security. When your vehicle or car or any assets gets damaged this policy will applicable aptly.
You should be aware of asset depreciation that is the worth of any goods decreases as the time passes by. Therefore, the insurance company does not refund the damaged goods original amount. The amount received is much less as compared to the original price. Guaranteed Auto Protection or Guaranteed Asset Protection that is GAP insurance can recover this cost. Following is an example to make you understand role GAP insurance easily:You decided to buy a luxurious car for your family. The seller agrees to take payments in installments without you making any down payment as your last credit records impress him/her. Suppose you accidentally damage this car, your insurance company will not give you back the full amount and at the same time, the seller of the car will start demanding for the full payment. At such situation GAP insurance plan will help you.
GAP Insurance for Second-Hand Car:
Even buyers of second-hand vehicles or cars can opt for GAP insurance plan. The extra need of financial security is also useful to the owners of the used cars. The owner of the second-hand car faces problem of very fast value depreciation of the used car as it has used parts. Therefore, the insurance company refunds very less amount. Moreover, the cars or vehicles actual owner will demand you to give the exact amount of the purchased vehicle or car.
Along with the various advantages of GAP insurance, this service is not served free. You have to pay certain amount of cost to avail this service. You may ask for refund of your cost once the actual debt is cleared. To enjoy the full advantage of this insurance plan it is important that you make some research about the options available for GAP.