GAP coverage is an optional type of insurance offered by some companies. While some drivers are aware of what it is, many are unsure if this coverage is right for them. To help you figure out if you need GAP insurance in Nevada, the Las Vegas car wreck lawyers at ER Injury Attorneys explain what GAP coverage is, list some companies that offer it, and why it may or may not be right for you.
What Is GAP Coverage for Car Insurance?
GAP is an acronym that stands for “guaranteed asset protection.” In the context of automobile insurance, this add-on covers the lessee or owner of the vehicle in the event of a total loss. If you’ve been in a collision or crash that leads to your car’s value being written off (commonly referred to as your car being “totaled”) then GAP coverage would cover any outstanding money owed on the vehicle.
Which Companies Offer GAP Insurance in Nevada?
Actuaries at insurance companies are constantly evaluating the risks and rewards of their various product offerings. With that in mind, the companies that offer Nevada GAP coverage are constantly changing. Three things to keep in mind are:
- Not all car insurance companies offer GAP coverage
- Even car companies that do offer it may not necessarily offer GAP coverage in Nevada
- Your insurance company may stop or start offering GAP insurance at any given time
As of this writing, some of the insurance companies that offer Nevada GAP insurance include:
- The Hartford
- Las Vegas Auto Insurance
- Tesla (automatically included in leases, optional for buyers)
Is GAP Coverage Right for Me?
Now that you understand what GAP insurance is and know some of the companies that offer it in Nevada, the tough part is figuring out if it’s right for you. The short answer is that GAP coverage isn’t necessary for everyone and depends on individual financial circumstances.
In some cases, GAP insurance can be a waste of good money, while in other cases it can be a financial lifesaver. In broad terms, you should strongly consider Nevada GAP coverage if:
- You made a small down payment on a long-term loan
- You are leasing your vehicle
- The depreciation on your vehicle outpaces your loan payments
Another rule of thumb to keep in mind is that GAP coverage is generally more valuable if you’re in the first year or two of a lease or ownership. Your vehicle’s value depreciates every day and the usefulness of GAP insurance declines with that value.
To figure out if GAP insurance is right for you, you must know the value of your automobile, how much money you still owe on your vehicle, and whether repaying that money in the event of a total wreck will leave you in a financial hole. Additionally, you should also factor in the cost of buying or leasing another vehicle, if you absolutely need one for commuting and day-to-day life.
Contact a Las Vegas Car Crash Lawyer
The Nevada car accident lawyers at ER Injury Attorneys hope that you have a better understanding of GAP insurance in Nevada after reading this blog. Our team also hopes that you’re never in a crash so severe that it leaves your car totalled. Unfortunately, accidents happen every day and for reasons beyond our control. Should you suffer injuries incurred in a car wreck then contact us for immediate assistance.
You can reach ER Injury Attorneys 24 hours a day, 7 days a week for a free consultation. Our team is available by phone at 702-878-7878 and online through LiveChat or encrypted contact form. Our accomplished and experienced injury attorneys represent accident victims throughout Nevada, including Las Vegas, Henderson, Summerlin, Pahrump, Boulder City, Laughlin, and beyond. To make sure that you get the settlement that you deserve in the shortest amount of time possible, give us a call today.