Establishing the reasons behind GAP insurance is one thing but there are still a number of considerations that road users should keep in mind before actually adding the feature on to an existing auto insurance policy. GAP insurance requires careful consideration and there are a number of points to review before committing to any form of additional auto insurance coverage.
Important Factors Concerning GAP Insurance
- Although the overwhelming majority of vehicle owners will purchase GAP insurance as soon as a car is purchased, it is still entirely possible to instigate coverage throughout the duration of any valid auto insurance coverage period
- If a claim is made on your GAP insurance addition, the road user must remain within the terms of compliance of their lease agreement. Failing to comply with any mandate may see your GAP insurance addition declared null and void
- GAP insurance coverage may not be in force if comprehensive coverage hasn’t been purchased as part of your auto insurance policy. As a rule, most lease contracts will require the vehicle owner to carry comprehensive insurance and collision coverage at all times
If your vehicle is declared a total loss after an accident or has been stolen, it is vitally important that any payments due on the vehicle are still made. Failure to do so can lead to complications further down the line and some auto insurance companies retain the right to waive their responsibilities regarding GAP insurance if payments on a vehicle are not completely up-to-date.