Gap Insurance

insurance gap

The Guaranteed Auto Protection (GAP) insurance (also known as GAPS) was established in the North American financial industry. A gap insurance covers the difference between the value of your car if you bought it and what an insurance company would give you. Do you know that there is more than one type of gap insurance? With GAP insurance, you don't fall by the wayside - it covers the difference between the amount you paid for your car and the market value at the time of your claim. Guaranteed Asset Protection (GAP).

Gap insurance - what is it? - Australia Stratton Finance

The Guaranteed Asset Protective (GAP) insurance is a cover against this possible loss: it will help you avoid a gap between your financing payment and the insurance value of your car when it is depreciated. What causes a deficit? When your car is depreciated during financing, your financing company requires you to disburse the rest of the financing agreement.

The gap can arise for a number of different causes, but is often due to the fact that the fair value of a vehicle falls more quickly than the financing of the vehicle is repaid in the first few years of its lifetime. How is GAP Insurance doing? When your vehicle is depreciated and a deficit arises, you will usually need to find the money to pay the balance between the sum assured and the financing payment (including interest, charges, etc.) - even if you were not guilty of the depreciation.

The CAP insurance policy compensates for this deficit*. Through the payment of a one-time insurance premium, Gap Insurance can help you with security for the lifetime of your auto loans. It is also possible to pay the bonus as a flat rate or to add it to the financing of your vehicle. Which coverage ratios are there? Stratton takes care of the issuance of several GAP insurance programs.

Several different choices are available, each protecting you from different outages. Up to $6,000 in extra coverage. An automobile is a write-off due to accidents, fire or thievery. To learn more about GAP Insurance or to request a quotation, please call us at 1300 STRATTON (1300 787 288).

This information is of a general character only. stricton will arrange the issuance of several different GAP insurance policies and you should consider the appropriate Product Disclosure Statement before buying GAP insurance.

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