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Are you aware of the financial risks associated with vehicle ownership in Texas? With vehicle depreciation and the risk of accidents, protecting yourself from unexpected costs is crucial. Protect the investment made in your vehicle with Guaranteed Asset Protection (GAP). GAP protects the “gap” between the vehicle’s value and the amount you still owe should your vehicle face total loss due to an accident or theft. It’s a non-insurance product made available via a loan/lease deficiency waiver. GAP can give you peace of mind by protecting you against the financial burden associated with the loss of your vehicle.
The case for GAP Insurance in Texas
Texas, with its extensive highways and rapid vehicle depreciation, presents a strong case for gap insurance. The state's high rate of vehicular depreciation, coupled with its growing population, underscores the importance of this coverage to protect your financial investment in your vehicle.
The state's geography leads to longer commute distances and increased vehicle usage, accelerating the rate of vehicle depreciation. In the unfortunate event of a car accident, the insurance payout is often insufficient to cover the outstanding balance on the loan, leaving vehicle owners in a financial quandary. Gap insurance coverage bridges this 'gap,' protecting Texans from potential financial distress.
If your car is stolen and not recovered, standard comprehensive insurance only covers the current market value of the car, often leaving you short to pay off your car loan or lease. Again, gap insurance effectively tackles such scenarios, ensuring you are not left in a car loan debt trap.
What does GAP protect?
GAP is designed for your protection whether you finance or lease a new or used vehicle. Ask your loan representative if your vehicle type is eligible for GAP.
Gap insurance in Texas boasts a number of key features and benefits designed to safeguard vehicle owners from serious financial burdens. The fundamental purpose of gap insurance is to cover the difference between a vehicle's actual cash value and the balance still owed on the financing or lease agreement. The actual cash value is the vehicle's depreciated value, while the balance owed is the remainder of the loan or lease.
Gap insurance does not cover vehicle repairs, rental cars while your vehicle is being fixed, extended warranties, or loan payments in case of financial hardship, job loss, disability, or death. It also doesn’t cover carry-over balances if you've rolled over an amount from a previous loan into your current loan. However, gap insurance will usually cover your insurance deductible up to a certain amount.
The benefits of gap insurance for Texas residents are significant. Knowing that you're financially protected if your vehicle is totaled or stolen provides peace of mind. It allows you to focus on acquiring a new vehicle instead of worrying about the unpaid balance of your previous vehicle.
How does GAP work?
GAP protection goes into effect when you need it most. With GAP, you have one less worry if your vehicle is totaled in an accident and can’t be repaired, or stolen and isn’t recovered.
GAP waives the difference between your primary insurance carrier’s settlement and the payoff of your loan. Included in this difference is your insurance deductible, up to $1,000****.
You stay in the driver’s seat
The following is a typical example of how GAP comes through for you:
TOTAL GAP BENEFIT..................................................$4,000
Smart Financial offers a straightforward process to obtain GAP insurance in Houston, Texas. Click the link below or feel free to give us a call to learn more about Smart Financial's GAP insurance program.
For more information, please call 713-407-1755 or 1-800-392-5084.