Gap Insurance

Protecting yourself from coverage gaps

What Is Gap Insurance?

When you purchase a new vehicle, it's important to protect not only your new investment but also your wallet. If your new car is totaled due to an accident, you could be left to cover the difference between what your car is worth and what you have remaining on your auto loan. In these scenarios, gap insurance will protect you from having to pay the difference out of pocket. Gap insurance fills the "gap" between what your insurance pays off and what you still owe.

When Should I Purchase Gap Insurance?

Consider the following factors when deciding whether to add gap insurance to your auto policy.

Purchasing gap insurance is a wise decision if:

  • You lease a vehicle (often required on most lease agreements).
  • Your auto loan is for five years or longer.
  • Your down payment was less than the traditional 20%.
  • You drive more than 15,000 miles annually.

Conversely, gap insurance may not be as essential if:

  • You purchase a used vehicle, especially one that is at least three years old.
  • Your auto loan is for three years or less.
  • You make a sizeable down payment.

Is Gap Insurance Right for You?

Our team can help answer questions about gap Insurance and whether it is a wise investment for you or not.

For over 55 years, AIS has been helping drivers obtain affordable auto insurance policies that suit their needs. We can assist you by comparing quotes from our network of trusted providers to get you the best combination of coverage and price.

For a free quote on auto insurance, gap insurance, or any other type of coverage, speak with an insurance specialist by calling (888) 772-4247.

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