How Does GAP Auto Insurance Work?
In the event of a car accident where the vehicle is declared a total loss, the standard auto insurance policy typically covers the vehicle’s actual cash value at the time of the accident. However, the actual cash value may be lower than the remaining balance on the auto loan or lease.
This is where GAP insurance comes into play. It covers the difference between the actual cash value and the amount owed on the vehicle, effectively protecting the policyholder from having to pay out of pocket for the remaining loan or lease balance.
What Are the Benefits of Guaranteed Asset Protection Insurance?
GAP insurance provides several benefits for car owners, especially in no-fault states where personal injury protection insurance focuses on medical expenses rather than property damage.
Some advantages include:
GAP insurance shields policyholders from owing money on a totaled vehicle, reducing financial stress after a car accident.
Coverage of negative equity
If the car’s value depreciates faster than the loan balance decreases, GAP insurance covers the negative equity.
For leased vehicles, GAP insurance can help cover the difference between the lease payoff and the actual cash value.
Do I Still Need to Hire a Lawyer if I Have Insurance?
While GAP insurance primarily addresses property damage, a car accident lawyer can help by investigating an auto accident’s cause and liability.
At Friedland & Associates, our car accident lawyers can gather evidence, interview witnesses, and analyze accident reports to build a strong case for their clients. In cases where property damage exceeds insurance coverage, lawyers can negotiate with insurers and third parties to ensure fair compensation for damages.
How Do Lawyers Handle Claims Adjusters in No-Fault States?
The car accident lawyers at Friedland & Associates are experienced in handling claims adjusters, especially in no-fault states. Our attorneys can guide clients through the claims process, ensuring their rights are protected and proper compensation is pursued. Our legal team provides expert negotiation, legal documentation, and if necessary, litigation support to help clients receive the compensation they deserve.
Contact Us Today!
For assistance with insurance claims, property damage, or personal injury cases, contact Friedland & Associates today to schedule a free consultation.
Our experienced car accident lawyers can help you navigate complex insurance matters and ensure your rights are upheld. Reach out today to discuss your case.