GAP insurance protects the value of your newer vehicle when you have a loan or lease. If an accident happens, GAP insurance pays the difference between the value of your car and the remaining balance on your loan or lease. Often newer vehicles lose value quickly. GAP insurance protects you from absorbing the difference if a loss should occur.
The amount between your insurance deductible and the loss from this financial shortfall is the “gap” you can be left owing. Typically a new car is worth approximately 30 percent less in 3 months than the day it was purchased.
In order to protect yourself from owing thousands you will want to purchase GAP insurance. Most of the carriers Ally Car Insurance lists offer GAP insurance.
If you think you may need GAP insurance, use our free quote form and enter your information to get a free quote that include GAP insurance. It will be listed as Loan/Lease Gap coverage as you fill out your quote.