Allied Gap Insurance: Bridging the Coverage Gap for Your Vehicle’s Value

What You Need to Know About Allied Gap Insurance

Imagine your dream car, financed and ready to hit the road. But what if it’s stolen or totaled just after you make the purchase, leaving you with an outstanding loan that exceeds the car’s value? That’s where allied gap insurance comes into play.

Financial Protection for Unexpected Losses

When you experience a total loss of your financed vehicle, your comprehensive and collision insurance policies typically cover the actual cash value of the car. However, this value may not be enough to fully cover the balance you owe on the loan. Allied gap insurance bridges this gap, ensuring you’re not left with a costly deficiency.

Who Benefits from Allied Gap Insurance?

Allied gap insurance is particularly valuable for:

• New car buyers with high financing costs
• Buyers of cars that depreciate rapidly
• Individuals with leases or loan terms longer than the industry average

Summary

Allied gap insurance provides peace of mind by protecting you from the financial burden of a total loss. It covers the difference between your loan balance and the car’s actual cash value. Consider adding allied gap insurance to your auto insurance portfolio if you want to safeguard yourself against unexpected financial setbacks.

Allied GAP Insurance: Comprehensive Guide for Expanded Vehicle Protection

Introduction

Allied GAP insurance offers financial peace of mind for vehicle owners, bridging the gap between the insurance settlement and the remaining loan balance in the event of a total loss. This article explores the ins and outs of Allied GAP insurance, providing insights into its coverage, benefits, eligibility, and factors to consider.

What is Allied GAP Insurance?

Allied GAP (Guaranteed Auto Protection) insurance is an optional coverage that supplements primary auto insurance policies. It protects against financial loss when a car is declared a total loss and the insurance payout falls short of the remaining loan balance.

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Coverage and Benefits of Allied GAP Insurance

• Coverage: Pays the difference between the insurance settlement and the remaining loan balance up to a pre-determined limit.
• Benefits:
  • Protects against financial hardship in the event of a total loss.
  • Eliminates the need for out-of-pocket payments to cover the remaining loan balance.
  • Provides peace of mind by ensuring vehicle replacement without additional financial burden.

Eligibility for Allied GAP Insurance

To qualify for Allied GAP insurance, typically the following requirements must be met:

• The vehicle must be financed through an approved lender.
• The loan term must exceed 60 months.
• The vehicle must be less than a certain age or mileage limit.

Factors to Consider

• Cost: Allied GAP insurance typically costs a few hundred dollars and can be added to monthly loan payments.
• Loan Amount: Coverage limits are typically aligned with the outstanding loan balance.
• Term: GAP insurance policies generally last the duration of the loan term.
• Exclusions: Some policies may exclude certain types of losses, such as those caused by mechanical failures.

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Alternatives to Allied GAP Insurance

• Primary Auto Insurance: Adjust coverage limits to ensure adequate settlement in case of a total loss.
• Credit Life Insurance: Provides coverage in case of death or disability and can be used to pay off the loan balance.

Benefits of Allied GAP Insurance over Alternatives

• Specialized Coverage: Tailored specifically to cover the gap between insurance settlement and loan balance.
• Guaranteed Protection: Ensures coverage up to the pre-determined limit, regardless of the settlement amount.
• Simplified Process: Streamlines the settlement and loan payoff process in the event of a total loss.

Conclusion

Allied GAP insurance offers a valuable layer of protection for vehicle owners who want to protect against financial loss in the event of a total loss. By understanding its coverage, benefits, eligibility, and factors to consider, individuals can make informed decisions about whether this type of insurance is right for their circumstances. By supplementing primary auto insurance with GAP insurance, drivers can ensure comprehensive vehicle protection and financial peace of mind.

FAQs

1. What happens if my loan balance exceeds the GAP insurance coverage limit?

In this case, you may be responsible for the remaining loan balance that is not covered by the insurance policy.

2. Does Allied GAP insurance cover leased vehicles?

Yes, Allied GAP insurance can be purchased for leased vehicles to cover the difference between the insurance settlement and the lease buyout amount.

3. What factors affect the cost of Allied GAP insurance?

The cost can vary based on the vehicle’s value, loan amount, and term.

4. Can I cancel Allied GAP insurance?

Yes, you can cancel the policy at any time, but you may not receive a refund for the premium paid.

5. How do I file a claim under Allied GAP insurance?

Contact your insurance provider and the GAP insurance provider to initiate the claim process and provide the necessary documentation.