GAP: Where the Name is the Acronym! (or vice versa)

GAP. What is it?

GAP is an acronym-it stands for Guaranteed Asset Protection. And if you are financing a vehicle, it is something that you ABSOLUTELY need to have. There was a fun show in Australia-Rostered On-and there was a saying from the shop that "you can't put a price on peace of mind". Well-here, it's the price of less than the average month's rent here in the Seattle area (okay I live in Seattle) but it can be the difference between knowing you are protected, and a hefty bill or even a repossession.

The gist of it: you get GAP on your vehicle. As you should. Some yahoo is driving like a complete ignoramus and THUD...you get hit. Hard. The insurance company say "Yeah...this is a total loss. Not roadworthy.". In that case, we first hope that you are okay. But then, you are like "Welp...I still owe on my car". Insurance, very rarely, will say that your car is worth what you owe on it. In some cases, you can have a difference that is enough to buy me one of the Chanel Metier d'Arts bags! (Not Geoff the Giraffe, cause that's over $30K) I don't think anyone has a random $10K just laying about, so that's where GAP comes in. 

GAP will step in to help cover what the insurance doesn't. And unlike a loan/lease payoff plan from an insurance company, this will actually cover more than what the insurance will! 

You may think "Oh, this isn't necessary. I don't drive recklessly, and I don't plan to get hit by an uninsured/underinsured motorist". Guess what? Life has a funny way of not going according to what we plan. So be smart-get GAP.