As you look over the final details of your new car purchase, you might notice some fine print about GAP insurance. Also known as "guaranteed auto protection," GAP insurance protects you and your lender from significant losses in the event of an accident resulting in a total loss of your vehicle. GAP covers the gap between the actual value of your vehicle and the remaining amount on your auto loan.
One of the most important factors for choosing an auto insurance policy is knowing what the policy will cover. Determining exactly what is covered by your auto insurance can be difficult if you are not familiar with the common terminology that insurers use. Here is an explanation of five types of auto insurance coverage to help you make an informed decision when buying new insurance.
Bodily Injury and Property Liability Coverage