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GAP Insurance – What Texas New Car Owners Need to Know

Congratulations on your new car purchase! It’s an exciting time, but not one to be taken lightly. There are many responsibilities and expenses associated with a new car, and making sure that you have adequate Texas auto insurance is one of them.

In general, having auto insurance protects you, your car, and others from the financial impact of any damage or accidents that may occur. While there are many types of auto insurance to purchase, one important type of insurance you should consider is Guaranteed Auto Protection (GAP) insurance. Typically, this type of insurance covers the difference between the amount you owe on your car loan and the value of your car.

If you purchased a new car in the last 12-18 months, you may recall the salesman pitching you on the importance of GAP Insurance. Odds are you “shut down” the purse strings; half listened and said “no thanks”. You just spent a ton of money on a new car after all, why increase your monthly car expense even more? The truth is…the salesman was right. For many new car owners, GAP Insurance can be an important protectant against financial loss. Especially for those drivers prone to auto accidents.

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