GAP insurance covers Nissan vehicle owners against any failure in your standard vehicle insurance in an event of a total loss of your car, to cover your liabilities on it. Getting a GAP insurance for your Nissan vehicle is much easier now. For those who are confused about taking GAP, here we will discuss some basic aspects to be known.
Is GAP mandatory?
GAP insurance is not mandated by law, but it is still being considered as a wise investment by a large number of vehicle owners. Car accidents can happen to anyone at anytime. If the damage to the vehicle is serious enough, you can find yourself in a highly stressful situation, more so if you still owe a lot to a lender.
If an insurer declares it as a total damage, they will cut you a check, but that will be only based on the current market value of the car. There can still be a huge difference between the insurance proceeds and the amount you owe to the lender.
This is where GAP (Guaranteed Auto Protection) policy guards you at best. If your vehicle is declared at total loss, and the regular insurance provider doesn’t pay off what you actually owe to the lender, the GAP policy kicks in to pay the difference.
GAP Insurance to protect your credit
The lenders usually want you to have a full-coverage insurance on your Nissan vehicle as long as you owe on it. Your credit score will surely suffer as the lenders won’t compromise on the payment based on the agreement.
Such a credit problem can haunt you for many years and of course you need to make another purchase of vehicle on losing the first fully. In all such situations, a GAP policy can prove out to be your ideal guard. This is especially good for the younger consumers as a damaged credit may take many years to rebuild.
One need to remember that the Guaranteed Asset Protection insurance by Nissan does not actually replace the auto liability, third party, and the physical damage insurance. As defined by the norms, GAP insurance is for “a specific situation where the vehicle is damaged or lost beyond the scope of economic repair”.
Payment by GAP
GAP insurance is supposed to pay the difference between the amount paid by the primary insurance firm and the actual amount owed to the lender. Say for example, GAP can cover a discrepancy as £500 or £10,000 based on the slabs you select while purchasing coverage policy. GAP can make the payment directly to the lender, to the insurer, or even as a reimbursement for out-of-pocket expenses.
What GAP doesn’t cover?
GAP only commits to pay the amount you owe from the original agreement. It won’t cover any additional fee, penalties over it, or interest if any. It should also be noted that if the insurance policy had changed after purchasing GAP, but the latter was kept the same, GAP will not cover for the increased indebtedness based on the new policy.
The procedure for GAP insurance is much easier now for Nissan owners. The application can also be done online and on submission of the supporting documents, the policy can be cleared in a day or two and you can get collect the documents to be kept handy.