What does car gap mean?
1 Answers
Gap insurance is a type of auto insurance product related to vehicle protection. Simply put, when a vehicle is declared a total loss by the insurance company due to an accident, the compensation provided by the insurer is based on the current market value of the vehicle, which is inevitably lower than the original purchase price. This insurance covers the difference and reimburses the car owner in such situations. Here is additional information: The four essential types of auto insurance are: Compulsory traffic insurance, which is mandatory by the state and required for driving. Third-party liability insurance mainly covers bodily injury and property damage to third parties in traffic accidents. Vehicle damage insurance compensates for the loss of your own vehicle, as minor collisions are unavoidable when driving. No-deductible insurance.