What is GAP insurance?

 

A: When your car is deemed a total loss after an accident, it is the insurance company's obligation to pay you the fair market value of your car. Sometimes, the fair market value is less than what you owe to your lienholder. You are then "upside down" on your note and will have to pay the difference out of your pocket. Unless you have GAP insurance, which is designed to pay that difference, or gap, in what you owe and what the car is worth. Because cars depreciate so rapidly, it is excellent coverage to have. You can purchase it from your own auto insurance company or often times directly from the lienholder.

Earl K. Straight serves victims of Texas car and truck accidents in Austin, Round Rock, Bastrop, Cedar Park, Buda, Kyle, Taylor, and elsewhere in Travis County, Williamson County, Hays County, Lee County, and Burnet County, including accidents on I-35, Highway 1 (Mopac Expressway), Highway 183, and other Texas roadways.