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GAP insurance is often paid upfront and the purchaser is usually entitled to a refund of the unused portion of the premium if the vehicle is sold or refinanced before the end of the loan term. [4] There are two ways of getting GAP coverage. The first type is an insurance policy sold by a broker. The second type is a waiver agreement sold by a ...
A GAP insurance policy is typically regarded by state regulators as an insurance product, [2] and regulated as such. By contrast, GAP waiver is not considered insurance in most U.S. states, provided that the auto lender agrees to waive the difference between the outstanding loan amount and the value of the vehicle at the time it was totaled or ...
Gap insurance only provides financial protection for the gap between the actual cash value of a vehicle at the time of a total loss claim and the current amount still owed on an auto loan. Total ...
In this example, gap insurance will pay that $5,000 difference so you don't have to. However, what's considered a "total loss" varies by state and by auto insurance provider. When to get gap insurance
Gap insurance. If you still owe money on your car, this pays the difference between what you owe on your car loan and what your car is worth if it's totaled or stolen.
The cost of gap insurance in North Carolina will vary depending on numerous factors, including insurance provider, vehicle type, location and other personal rating factors. The average cost of a ...
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