How To Get Gap Insurance After Refinance

What Is Gap Auto Insurance? Is It Worth It? and Should You Finance It from nkyinsurance.com

Are you currently in the process of refinancing your car loan? If so, you may be wondering how to get gap insurance after refinance. Gap insurance is an important coverage that protects you in the event of a total loss, and it's especially important if you owe more on your car than it's worth. In this article, we'll discuss everything you need to know about getting gap insurance after refinancing your car loan.

What is Gap Insurance?

Before we dive into how to get gap insurance after refinance, let's first discuss what gap insurance is. Gap insurance stands for Guaranteed Asset Protection, and it's a type of insurance that covers the difference between what you owe on your car loan and the actual cash value of your car in the event of a total loss. This is important because if you owe more on your car than it's worth, you could be stuck paying off a loan for a car you no longer have.

How to Get Gap Insurance After Refinance

Now that you know what gap insurance is, let's talk about how to get it after refinancing your car loan. The good news is that it's typically easy to get gap insurance after a refinance. In fact, many lenders require it. You can typically purchase gap insurance from the dealership where you bought the car or from your insurance company. You may also be able to purchase it from a third-party provider.

How Much Does Gap Insurance Cost?

The cost of gap insurance can vary depending on the provider and the amount of coverage you need. On average, you can expect to pay around 5% of your total premium for gap insurance. However, some providers may charge more or less depending on the state you live in and other factors. It's important to shop around and compare rates to ensure you're getting the best price.

Is Gap Insurance Worth It?

Now that you know how to get gap insurance after refinance and how much it costs, you may be wondering if it's worth it. The answer is that it depends on your individual situation. If you owe more on your car than it's worth, gap insurance can provide valuable protection in the event of a total loss. However, if you owe less on your car than it's worth, gap insurance may not be necessary. Overall, if you're refinancing your car loan, it's important to consider getting gap insurance. It can provide valuable protection and peace of mind in the event of a total loss. Be sure to shop around and compare rates to ensure you're getting the best coverage at the best price.

Topic	Summary
What is Gap Insurance?	Gap insurance covers the difference between what you owe on your car loan and the actual cash value of your car in the event of a total loss.
How to Get Gap Insurance After Refinance	You can purchase gap insurance from the dealership where you bought the car, your insurance company, or a third-party provider.
How Much Does Gap Insurance Cost?	The cost of gap insurance can vary, but on average, you can expect to pay around 5% of your total premium.
Is Gap Insurance Worth It?	Whether or not gap insurance is worth it depends on your individual situation. If you owe more on your car than it's worth, it can provide valuable protection.

Source: nkyinsurance.com