TALLAHASSEE, Fla., July 18, 2016 /PRNewswire/ -- Mid-July is the perfect time for a family road trip or weekend getaway – a chance to enjoy those last tranquil weeks before the hustle and bustle of the back-to-school season. While getting on the road comes with its share of expenses, the devastating cost of a totaled car shouldn't be one of them.
When a vehicle is wrecked or stolen, insurance typically only covers the market value – not necessarily enough to pay off the loan, much less get a replacement. This leaves owners responsible for the unpaid loan on a car they can no longer drive – the "gap" in their coverage. Fortunately, Guaranteed Asset Protection, or GAP waivers, can eliminate this burden so consumers can concentrate on getting back on the road.
"As families enjoy their summer vacations, it's important that they are aware of the options they have if faced with a car emergency," said Tim Meenan, executive director of the Guaranteed Asset Protection Alliance. "No one should be faced with having to make payments on a car that's already totaled, and that's what GAP protection is for."
To help avoid continued payments on an unusable vehicle, here are several tips for summer drivers and vehicle owners:
- Do your homework. Understand how rapidly your vehicle's value will depreciate – especially on new vehicles – starting the moment you drive it away from the dealership. With a clear picture of the car's actual value compared with the amount you're obligated to pay on the financing loan, you can get a better sense of how effectively a GAP waiver will help.
- Know your insurance. If your car is totaled in an accident or stolen, it's important to be aware of your auto insurance policy and what it will cover. Knowing the coverage provided by your insurance policy will help you understand any gaps.
- Stick to your plan. Timely payments on your vehicle coupled with a GAP waiver are crucial to ensuring that you have the lowest possible out-of-pocket expenses if you find yourself in an emergency situation. While no one can guarantee that your vehicle will survive a wreck, a working GAP waiver can help you survive the financial aftermath.
For more information about how GAP waivers can help you, visit gapalliance.org.
Guaranteed Asset Protection Alliance (GAPA) supports its members throughout the U.S. through lobbying, legislative tracking, professional association management services, and more.
SOURCE Guaranteed Asset Protection Alliance