GAP Insurance (Guaranteed Asset Protection, for its acronym in English) is a type of additional coverage that can be crucial in certain situations. While standard health or auto insurance covers a significant portion of your expenses, GAP insurance provides an extra layer of protection that can be invaluable to cover the part your plan doesn’t cover.
This type of insurance covers the difference, or “gap,” between your expenses and what your insurance doesn’t cover.
Imagine you have a loan for a car, and due to an accident or theft, the vehicle is completely destroyed. Standard insurance will cover the current market value of the vehicle, but this amount could be less than the remaining balance you owe. In this scenario, GAP insurance comes into play by covering the difference between what you still owe and what regular insurance pays.
The same applies to health insurance. GAP will help cover the gap that your health plan doesn’t cover for medical treatments you may have received.
In summary, GAP insurance can be essential to avoid significant debts. But before getting it, it’s important to research, compare prices, and consider your personal financial situation to determine if it’s a suitable investment for your specific circumstances.
We can provide you with more information if you are interested in GAP insurance! Contact us now at 786-577-2260.