Do Jeep Lease have Gap Insurance? Yes, Jeep lease have GAP insurance, GAP insurance is required when you rent a vehicle, in which case it should be detailed in your rental agreement.
Before we proceed we need to answer the question, what is GAP insurance? GAP insurance helps cover the “gap” between what you owe on a vehicle and what it’s worth if it ends up in an accident.
For better understanding continue reading our guide on do jeep lease have gap insurance because we have worked out an example for you below; Suppose you took out a $30,000 loan for your new vehicle, but the car has a value of $24,000 at the time of the accident. If you have GAP insurance, the policy kicks in and covers the remaining $6,000 so you don’t have to.
Even from this small example, you can see that GAP insurance can be very useful when driving on the roads. If you’re wondering; do jeep lease have GAP? Read along as we explain how this coverage option works and how to tell if you bought it.
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Do Jeep Lease have Gap Insurance?
How to know if you have GAP insurance – GAP insurance is not state-mandated insurance like liability insurance. If you want GAP insurance for your vehicle, you will need to apply for it or find it and add it to your current insurance coverage. In some cases, GAP insurance is required when you rent a vehicle, in which case it should be detailed in your rental agreement. If you ask; how do I know if I have GAP insurance? the best option is to consult your insurance company or the dealer where you bought/rented your vehicle.
Guaranteed Asset Protection (GAP) – What is GAP Protection?
In the unfortunate event that your vehicle is declared a total loss due to irreparable theft or accidental damage, your auto insurance company will normally pay the current market value of your vehicle minus your deductible.
But what if your loan or lease balance is higher than the market value of your vehicle? Answer: You are responsible for paying the difference, including your deductible. This can be expensive.
The reason for the potential difference is that the loan/lease balance typically decreases by a predictable amount as monthly payments are made. However, the market value of your vehicle is affected by a number of variable factors (e.g., supply, demand, mileage). This means that the market value can often be less than your debit balance, especially at the beginning of your contract when you have the most to lose.
GAP can help you waive the difference, including up to $1,000 of your deductible.
· It is your choice
The GAP is an optional form of protection that is only available at the time you sign your financing or lease agreement with the dealer. If you would like to know more about the GAP, please ask for the GAP agreement. In addition to the restrictions listed on the right, terms and conditions may vary by state.
· Franchise payment
The GAP only benefits if there is a balance on the loan or lease after the insurance is settled. If there is no outstanding balance, we will not pay out your deductible.
· Settlement deductions
The amount of the GAP waiver does not include insurance settlement deductions for customer-retained salvage, unrepaired physical damage, towing, rental, or storage.
· Non-canceled add-ons
The amount of the GAP waiver does not include the refundable portion of any financial additions such as credit insurance or service contracts.
· Financial items not covered
The amount of the GAP exemption does not include late payments, deferred payments, late fees/interest, or interest after the loss date.
· Lost equity
GAP does not reimburse advances or equity.
· Refinance
The GAP coverage ends when the Retail or Lease Financing Agreement is refinanced.
· Financing guaranteed by the customer
The GAP does not apply to loans obtained from a financing source other than the dealer.
· Safe
GAP does not provide any insurance coverage for you or the vehicle, such as collision, all-inclusive, personal injury, property damage, or liability. You must have or obtain physical damage insurance for your vehicle at the time of purchase for the GAP to be in effect. The GAP does not replace primary auto insurance.
Do Jeep Lease have Gap Insurance FAQ?
How to buy GAP insurance?
If you’ve checked with your insurer and want to get GAP insurance, it’s relatively easy in Springfield. To purchase GAP insurance, you can purchase it from your current provider, an online insurer that specializes in GAP coverage, or from the Huber Heights dealer where you purchased or leased your vehicle.
Do Jeep Lease have Gap Insurance?
If you want GAP insurance for your vehicle, you will need to apply for it or find it and add it to your current insurance coverage. In some cases, GAP insurance is required when you rent a vehicle, in which case it should be detailed in your rental agreement. If you ask; how do I know if I have GAP insurance? The best option is to consult your insurance company or the dealer where you bought/rented your vehicle.
Check your insurance statement for GAP coverage
If you’re wondering; how do you know if you have GAP insurance? Ask yourself if you asked about GAP insurance when you bought your auto insurance. If you didn’t ask for it, you probably don’t have GAP insurance. If you’re not sure whether or not to ask, check with your insurance company or review your auto purchase agreement to see whether or not you have GAP coverage.
However, if you’re renting or financing a car, don’t immediately assume that you need GAP insurance. Some leasing and loan companies will include a GAP waiver clause in their policies with borrowers and tenants. The GAP waiver clause covers the “gap” between the amount you owe and what is paid by the insurer.
Conclusion – Do Jeep Lease have Gap Insurance
GAP insurance is required when you rent a vehicle, in which case it should be detailed in your rental agreement. If you want GAP insurance for your vehicle, you will need to apply for it or find it and add it to your current insurance coverage.
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