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What is gap insurance?

What is VRI insurance and GAP insurance?

  • I have V.R.I and GAP coverage on my car contract. I Can anyone tell me what these two things are?

  • Answer:

    Hey im a Salesmen.. I sell gap insurance all the time. Gap insurance is basically a little help to say if u wreck your car 3 months into financing the vehicle it will help cover some of your bill.... And i belive VRI is a new service called Vehicle retail insurance which i think may cover your behind more haha... If you have more questions ask me

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I don't know what VRI so hopefully someone else will. GAP insurance basically covers you for the loan on your car. You have auto insurance with collision and comprehensive insurance (or should). Collisions cover the damage caused by a collision and comprehensive covers it for damages caused by other non collisions, such as a tree falling on your car. Either way if your car is damaged to the point that its a total loss, your auto insurance will pay you for the CURRENT value of your vehicle. This value may be less then your current loan amount. If the value happens to be $8000 but your loan amount is $10,000, then your auto insurance will pay you $8000 minus your deductible. This obviously won't cover your loan. You still have $2000 left to pay on your loan even though you have no car now and plus you're already out your deductible. Your GAP insurance pays for that $2000 difference so that you don't have an outstanding loan like that for nothing.

Alex

GAP insurance covers the difference if the car is in a accident and is a total loss. Lets say you owe 10000.00 and the car is totaled. The insurance company pays you book value say 8000.00. Gap ins. will pay 2000.00 so you can pay off the loan in full.

jag

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