Where To Buy GAP Insurance In Canada?

Car dealerships and lenders both sell gap insurance. It’s a different insurance policy from your ordinary auto insurance. When you acquire a loan or lease for a new vehicle, you can buy it from the dealership or finance company. The cost of the insurance can be rolled into your car loan.

Can I just buy gap insurance?

Is Gap Insurance Available After You Purchase a Car? Depending on the model year of the vehicle, you may be able to receive gap insurance after you purchase it. Gap insurance isn’t only available at vehicle dealerships; many insurers include it as part of a car insurance policy.

Is gap insurance a thing in Canada?

If you are considering purchasing a new vehicle from a dealership, you will almost certainly be approached by a salesperson who will try to sell you Gap Insurance. What is, however, gap insurance? Guaranteed Asset Protection (GAP) is an acronym for “guaranteed asset protection” (or, in this case, Guaranteed Auto Protection). It’s a type of automobile loan that aims to safeguard new car owners from losing their whole auto payment if the vehicle is totaled due to damage beyond repair. In Canada, gap insurance is an optional form of auto insurance, and many automobile owners are confused if they have it (more on this later).

Can I buy gap insurance from my bank?

Gap insurance is also available through the bank or credit union that is financing your vehicle. Other lenders, like vehicle dealers, assess the cost of gap insurance as a single upfront payment and then add it to your loan amount. As a result, to avoid paying interest on your premium, it’s recommended to avoid this form of gap insurance.

Is it cheaper to buy gap insurance from the dealer?

Gap coverage can be purchased from the dealer, but it’s usually less expensive to add it to a current policy. Request no-obligation quotes from top insurers to find out what your own rates might be.

Can I buy gap insurance online?

Yes, you can get Gap insurance online almost everywhere you can buy regular auto insurance. You may also purchase it directly from Gap’s website.

The terms of your policy are restricted, and you must acquire a policy that includes comprehensive and collision coverage. Gap coverage may or may not cover your claim deductible, depending on the insurer.

Gap insurance, on the other hand, usually only pays the gap between the amount owing and the car’s real cash value.

How do you purchase gap insurance?

Gap insurance is available through a variety of sources, the most common of which are the dealership or lender that is financing your automobile, or directly from an auto insurance provider. When compared to adding gap coverage to your car insurance policy, getting it from the dealership or lender is usually more expensive.

However, a few things may influence the cost of gap insurance. Your insurer will most likely examine your vehicle’s actual cash value (ACV), geographic region, age, and auto insurance claims history, among other things. To determine if gap insurance is the correct financial protection for you, ask your auto insurer if it offers it and how much it would cost based on your scenario.

How much is gap insurance monthly?

Your car policy can cost as little as $3.00 per month or $36 per year, compared to hundreds when added to a car loan. GAP coverage given by vehicle dealerships and banks runs from $400 to $900 as a one-time fee that is then applied to the car loan, according to our research.

What is the most gap insurance will pay?

If you have comprehensive and collision coverage, and your vehicle is totaled due to a covered risk such as an accident, theft, fire, flood, tornado, vandalism, or hurricane, your insurer will pay you the actual cash worth of your vehicle. This sum is frequently far less than the remaining balance on your loan or the amount needed for a lease repayment.

When your actual cash value (ACV) payout is less than what you owe on your lease or loan, the “gap” you may be left paying is the result of this financial shortfall. Gap insurance could come in handy in this situation.

What does gap insurance cover?

Gap insurance will reimburse the difference between the vehicle’s ACV and the current outstanding balance on your loan or lease if it is stolen or totaled. It may also cover your usual insurance deductible.

Car owners frequently believe that if their vehicle is wrecked, it will be replaced for the price they paid, or at the very least the amount owed. This is not the case. As a result, several auto insurance companies offer gap insurance (also known as loan/lease payoff insurance) as an add-on policy. To get gap coverage, you must also have comprehensive and collision coverage, but these are normally required if you lease or loan your vehicle.

What isn’t covered by gap auto insurance?

  • Extensive warranties, credit life insurance, and other insurance purchased as part of the loan or lease
  • Wear and tear, past damage, towing, and storage costs are subtracted by the primary insurer.
  • Only factory-installed equipment is covered, as opposed to equipment added by the buyer.
  • Mechanical difficulties, such as engine or transmission breakdowns, or any other car issues that aren’t covered by your auto insurance policy

Does gap insurance cover theft?

Yes, gap insurance protects you if your automobile is stolen and not found. It works in conjunction with your comprehensive insurance to protect you from theft. If your automobile is stolen, comprehensive will pay up to the actual monetary value of your car, minus your deductible. The difference between that amount and what you owe on your loan would be covered by this coverage.

Is gap insurance Worth It Ontario?

On paper, Option Prime and gap insurance appear to be fairly comparable, however Optiom is significantly superior in terms of coverage. For example, if your minivan has a loan that is larger than its worth owing to depreciation as a result of excessive miles and interior damage caused by your children, gap insurance can give coverage. In the event of a loss, Optiom Prime assures that you receive full purchase price, not only the difference between the loan amount and the ACV of your small van.

Is gap insurance worth it?

It is debatable. Gap insurance is certainly worth your money if you owe more than your vehicle is worth at any stage. This is especially true if your down payment is less than 20%, so getting gap insurance for the first few years you own your automobile is generally a good idea. If your automobile is totaled, you won’t have to pay the difference between the real cash value and the amount you owe your lender out of pocket.

Optiom goes above and beyond by guaranteeing the purchase price, not only the difference between the real cash worth of your minivan and the amount you owe on your loan. While gap insurance can help, Optiom can help you get a much more acceptable settlement.

How much does gap insurance cost in Ontario?

Gap insurance is typically inexpensive and obtained at the time of purchase of a new vehicle from a dealership. Your charges will vary depending on common criteria such as the vehicle’s purchase price and anticipated usage.

Optiom Prime, on the other hand, can cost anywhere from $25 to $35 per month and covers the entire cost of your vehicle, not simply the gap between its depreciated value and your present loan.

Should I buy gap insurance from a dealer?

Some dealers may offer gap insurance when you buy or lease a new vehicle, but it’s important weighing if the cost is worth it when compared to what an insurance company might charge for in the past. Furthermore, an insurance broker will be familiar with your situation and requirements. In the end, it’s your decision, but don’t buy something unless you’ve thoroughly investigated all of your possibilities.

Partial Loss Deductible Reimbursement Benefit

If your primary auto insurance requires you to pay a deductible, Optiom Prime can repay you if your vehicle is damaged and repairable. If your car can be repaired after an insured loss, Optiom Prime will reimburse up to $500 of your deductible.

Rental Vehicle Reimbursement Benefit

If your primary auto insurance provider’s rental vehicle coverage expires before your vehicle can be replaced or repaired, Optiom Prime can pay you for the rental vehicle costs until the repairs/replacement are completed.

Key Fob Reimbursement Benefit

If you lose your vehicle’s key fob, Optiom Prime may be able to compensate you for the expense of replacing it. If your vehicle’s keys are stolen or lost, you might be charged up to $500.

Diminished Vehicle Value Benefit

If you’re in a no-fault collision, your Optiom Prime will pay a predetermined sum if the necessary repairs cost more than 25% of the vehicle’s declared worth (when the accident took place.) The fixed payout amount is determined by the car’s worth at the start of your policy (for example, if the vehicle value is between $5,000 and $10,000, the guaranteed payout will be $1,000, and so on).

Can I buy gap insurance after an accident?

No, gap insurance cannot be purchased after an accident and applied to the most recent accident. Gap insurance for future accidents may be available, but only after a minor accident in a relatively new car – not if your car has been damaged.

Gap insurance companies often only write coverage for brand-new or less than three-year-old vehicles. If your collision insurance or the at-fault driver’s liability insurance pays for the vehicle to be entirely repaired after a small accident in a relatively new vehicle, you may be able to qualify for a gap insurance coverage for future usage.

However, if your car was totaled and you didn’t have gap insurance prior to the accident, you won’t be able to purchase gap insurance to cover the rest of your loan or lease. The remaining balance will be your responsibility.