Gap Insurance - Get The Coverage You Need

Gap insurance could save you from a financial disaster if your car is totaled, and it's more budget-friendly than you may think. Enter your zip code today to discover how affordable it is to protect your investment with gap coverage from A-MAX.

What is Gap Insurance?

When your car's value depreciates, gap insurance can help protect you financially by bridging the gap between its value and your owe on it at the time of an accident in which the vehicle is deemed a total loss.

A new car starts to lose value as soon as you purchase it. Most auto insurance policies will only pay the vehicle's actual cash value if it is totaled in an accident, and sometimes, the actual cash value of the car is less than what you owe on the vehicle. Gap insurance can help. You can purchase this coverage through your auto insurance carrier, and if you total your car and the actual cash value of the vehicle is less than you owe to your leasing or financing company, your auto insurance company will pay the difference without any additional out-of-pocket expense to you.

Get Covered Today!

Amy V. ⭐⭐⭐⭐⭐

A-MAX Military

We are super satisfied with the service we get from Stephanie every time we need a quote, make a payment or even just a simple question…She is super friendly very professional and did I mention very thorough about any information she gives us. I feel like she always goes above and beyond no matter what service we need.Thank you Stephanie we need more people like you in the customer service world!

Nate P. ⭐⭐⭐⭐⭐

A-MAX Cypress

Lindsey was absolutely amazing, she stayed on the phone with me until the whole process was complete and was very polite! Also, the rates are unbeatable!!! I would put 10 stars if I could but I guess I'll just highly recommend them!

Abelia C. ⭐⭐⭐⭐⭐

A-MAX Blackhawk

Vanessa had helped me with a quote and getting started on insurance, she was extremely helpful and gave me an awesome deal!! She was super polite and beyond helpful!!

Miguel C. ⭐⭐⭐⭐⭐

A-MAX Closner Blvd

Great customer service! Immediate quote with the best prices in town. I had have them for about six years now and they are always eager to help and give you the best deal.

Richard L. ⭐⭐⭐⭐⭐

A-MAX Cypress

I have been with them for more than 8 years I have not had any problems very good company!

Lejoan B. ⭐⭐⭐⭐⭐

A-MAX Lake June

Angelica helped with my full coverage insurance in under 20 mins I was all set. Thanks again I’ll be recommending.

Ametrus B. ⭐⭐⭐⭐⭐

A-MAX Garland

If you just need liability insurance, this is the go to place. Lowest prices in town. Friendly agents to work with.

Is Gap Insurance Worth the Extra Premium?

The financing or leasing company for your new car usually offers gap insurance that can be built into your monthly payments. Still, if your auto insurance carrier offers gap insurance, carrying it on your auto policy can be much less expensive than buying it through your lessor or financing company. Gap insurance is required on a leased vehicle and is usually built into the lease.

If you are financing your vehicle, ask your auto insurance carrier if gap coverage is offered in the policy. Typically, gap coverage costs about $20-$50 per year and can be very worthwhile if you’re in a situation where you owe money on the balance of the loan and the actual cash value settlement for the vehicle is not enough to pay off the balance.

What Does Gap Insurance Cover?

Gap insurance covers the difference between what your car is worth when it is totaled in an accident and what you owe on the loan or lease you agreed to when you purchased the vehicle.

Let’s say that you financed your vehicle for 60 months, you are two years into your contract, and the balance on the loan is $20,000. If you get into an accident where your auto insurance company, or the at-fault driver’s auto insurance company, determines the value of the car is only $18,000, you will owe your loan or leasing company $2,000 to pay off the loan. If you have gap insurance, your auto insurance carrier will pay the $2,000, so you don’t have to come up with out-of-pocket money to pay off the loan or lease.

At the time of an accident in which your vehicle is totaled, your auto insurance, or that of the at-fault driver if it’s not you, will ask your loan or leasing company for the amount of the balance on your loan or lease. The insurance company will determine the actual cash value of the vehicle. If the actual cash value of the vehicle is less than what you owe on your loan or lease, the auto insurance company will pay your loan or leasing company the difference.

Who Doesn't Need Gap Insurance?

Keep an eye on the value of our vehicle. Sites like Kelley Blue Book can be used to determine the actual cash value of your car. If the value of your car is more than what you owe on the loan or lease balance, you can safely remove the gap insurance from your auto insurance policy to avoid the additional premium you are paying for the gap insurance.

Also, if your auto insurance policy offers “new car replacement” coverage or “agreed value” coverage, you do not need to carry gap insurance. These coverages guarantee that you will be paid to replace your vehicle (new car replacement) with one of the same year, make, and model of your totaled vehicle or pay you a value that was determined for the vehicle when you purchased it (agreed value). Agreed value coverage will pay either the cost to repair the vehicle, even if it exceeds the actual cash value, or the agreed-upon value, regardless of depreciation.