If you are considering an RV purchase, you must understand your insurance options. Guaranteed asset protection (GAP) insurance can help provide critical financial protection against unforeseen events that could result in a totaled RV.
Many RV dealerships offer GAP insurance when you finance your purchase. However, you may get a better rate when you work with your insurance agent to add this coverage to your core RV policies. Contact Arches Insurance today to learn how GAP insurance can help protect your future financial stability.
Why Is GAP Insurance Important for RV Owners?
GAP insurance can provide a valuable safeguard if you finance your RV. This optional insurance coverage helps bridge the gap between the outstanding balance on the trailer and its actual value if it is stolen or totaled.
After an accident or incident that renders your RV a total loss, your insurer typically calculates the settlement using the RV’s fair market value, which can be much less than the total payoff amount.
If you have GAP insurance, it kicks in to help cover the difference between your RV payoff and the insurer’s settlement. Without GAP coverage, you may be financially responsible for paying the difference between the insurer’s settlement and the total amount you owe the lienholder.
When to Buy GAP Insurance
GAP insurance isn’t right for every RV owner. But depending on your situation, it can provide vital financial protection. Consider adding GAP coverage to your RV insurance policy under the following circumstances:
In both cases, GAP insurance can provide added security by helping to pay off your loan or lease when the total payoff amount is more than the depreciated value of your trailer at the time of the accident or incident.
GAP insurance can help protect your financial well-being so you can enjoy worry-free travels. Contact Arches Insurance in Pleasant Grove, Utah, to learn more about this valuable coverage and build your customized RV insurance plan.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.