What is the Difference Between Gap Insurance and Comprehensive Coverage?

When you file a qualifying claim, your comprehensive or collision coverage will pay the actual cash value (ACV) of your vehicle, less the deductible. In that case, your temporary coverage coverage could pay the difference between the ACV of your vehicle and the outstanding balance of your loan or lease. Liability insurance protects you in a car accident regardless of who caused it, and pays for your injuries and damages. Comprehensive and collision coverage covers different types of repairs to your vehicle.

GAP insurance, or Guaranteed Asset Protection, is an optional coverage that pays the difference between the value of your vehicle and the amount you owe for it when it is stolen or totaled. This type of insurance is especially useful if you've made a small down payment on your vehicle, have a long-term loan (more than 4 years), or have a car whose value depreciates rapidly. When you hit another vehicle, against a stationary object such as a pole or wall, or against a traffic hazard such as a barrier, collision insurance pays for repairs to your own car. Comprehensive and collision insurance only pays what a car is worth at the time of a theft or accident.

If you need legal help or are looking for information about the different types of car insurance offered in Florida, don't wait any longer to contact us. At the time of an incident, you are responsible for paying off your car loan, even if the insurance payment isn't enough to do so. That's why you have the option of taking out bodily injury liability insurance (BIL) in addition to your PDL and PIP coverage. Some types of car insurance, such as collision insurance, comprehensive insurance, liability insurance and provisional insurance, cover repairs to your car in the event of theft or damage.

Gap insurance helps you pay off your car loan or lease if you can't drive your car anymore because it's been wrecked or stolen. Gap insurance covers the difference between your auto loan and the depreciated value of the car. In other words, Gap insurance covers the difference between the value of your car at the time of depreciation and the outstanding balance. Ultimately, if you have a newer lease or loan, you should think about whether you can afford the difference between the balance and the value of your car.

Consider taking out this type of insurance even if you don't have an auto loan, especially if your vehicle has a higher value or if you can't afford to replace your car if you lose it in an accident. The Florida car accident lawyers at the Law Offices of Anidjar & Levine understand how important the right car insurance coverage can be to your finances. Full coverage is commonly defined as the combination of the minimum insurance required by the state, comprehensive insurance, and collision insurance, although emergency coverage is included if required by a lender or landlord.

Carl Somilleda
Carl Somilleda

General beer ninja. Hardcore social media guru. Devoted beer guru. Hardcore beer geek. Hipster-friendly web aficionado.