• Menu
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Eagle Trust Insurance

Massachusetts Auto, Home, Business, and Life Insurance Company

Header Right

Customer Login|Sign-up
617-625-8400
  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • Home
  • What We Insure
    • Overview
    • Auto Insurance
    • Homeowners Insurance
    • Renters Insurance
    • Condo Insurance
    • Business Insurance
    • Term Life Insurance
  • Get a Quote
    • Overview – All Quotes
    • Auto Quote
    • Home Quote
    • Renters Quote
    • Condo Quote
    • Dwelling Fire (Rental Property)
    • Business Insurance
    • Life Insurance Quote
  • Service Center
    • Overview
    • Billing & Payments
    • Report a Claim
    • Manage Your Policy
    • Login to CSR24
  • Resources
    • Overview
    • Glossary
    • RMV Links
    • Videos
    • Sitemap
  • About Us
    • COVID-19 (Coronavirus) Notice
    • Company Profile
    • Contact Us
    • Employment Opportunities
    • Privacy Policy & Terms of Use
    • Trusted Choice Pledge
  • Blog
  • Home
  • What We Insure
    • Overview
    • Auto Insurance
    • Homeowners Insurance
    • Renters Insurance
    • Condo Insurance
    • Business Insurance
    • Term Life Insurance
  • Get a Quote
    • Overview – All Quotes
    • Auto Quote
    • Home Quote
    • Renters Quote
    • Condo Quote
    • Dwelling Fire (Rental Property)
    • Business Insurance
    • Life Insurance Quote
  • Service Center
    • Overview
    • Billing & Payments
    • Report a Claim
    • Manage Your Policy
    • Login to CSR24
  • Resources
    • Overview
    • Glossary
    • RMV Links
    • Videos
    • Sitemap
  • About Us
    • COVID-19 (Coronavirus) Notice
    • Company Profile
    • Contact Us
    • Employment Opportunities
    • Privacy Policy & Terms of Use
    • Trusted Choice Pledge
  • Blog

GAP Insurance for Vehicle Purchases in MA

GAP InsuranceIf you’re in the market for a new vehicle, you may want to consider GAP (Guaranteed Auto Protection) insurance. When you go to sign your lease or financing paperwork, you will undoubtedly be offered this insurance. It may be helpful to know exactly what GAP insurance for vehicle purchases in MA is and what your options are for purchasing it.

What is GAP Insurance?

Let’s face it – cars can depreciate fairly quickly. Sometimes, the value of your vehicle can actually drop below the amount that you still owe on your loan. For example, your loan balance may be $25,000 but the value of your vehicle is actually $20,000. Your auto insurance will only cover the value of the vehicle. So, if you are in an accident and the car is totaled, your insurance company will only cover $20,000. This means that you need to cover the $5,000 difference yourself in order to pay off the loan. This is where GAP insurance comes in.

Why Purchase GAP Insurance?

First and foremost, GAP insurance only applies to cars that are financed or leased (it is usually required on a leased vehicle). So if you are paying in full – this type of coverage is irrelevant. However, the question now becomes…how much of a down payment are you able to afford? You may want to consider GAP coverage if your down payment will be less than 20% of the cost of the vehicle. As mentioned before, if you were to total the car, the actual value may be less than what you still owe on the loan. In this case, GAP insurance is recommended for purchases with little to no down payment and can be relatively inexpensive in the grand scheme of things. Another consideration is if you are purchasing a luxury vehicle, as the initial depreciation in value is greater on a higher priced car.

Where to Purchase GAP Insurance for Vehicle Purchases

You can purchase this type of coverage through the financing/leasing company at the time of purchase or through your MA auto insurance company. If purchasing it through the financing company, it’s usually a one-time up-front fee that they may offer to roll into your loan. In many cases, purchasing GAP insurance from your MA auto insurance company will be cheaper. You would pay monthly or annually rather than a large up-front fee.

Now that you have a better understanding of GAP insurance, what is covers, and where you can purchase it, you will be a better educated vehicle consumer. Contact your MA insurance agent for a quote on GAP insurance. It can be purchased when you first buy your vehicle or can be added to your policy at any time.

Previous Post: « Tips to Avoid Food Poisoning this Holiday Season
Next Post: Protecting Your Home in Frigid Temperatures | MA Winter Tips »

Primary Sidebar

Easy Insurance Quote
Need a Fast Quote?
Click the Easy Quote button above for a short quote request form with a fast telephone response from our team members!

BLOG TOPICS

  • Community Involvement (3)
  • Insurance (127)
    • Auto Insurance (71)
    • Condo Insurance (5)
    • Home Insurance (39)
    • Life Insurance (6)
    • Renters Insurance (1)
    • Umbrella Insurance (3)
  • News (24)
    • Bills & Laws (2)
    • Real Estate (6)
  • Tips (209)
    • Car Buying (6)
    • Car Maintenance (5)
    • Credit (2)
    • Driving (20)
    • Holiday (5)
    • Home Buying (8)
    • Home Ownership (85)
    • Home Selling (1)
    • Registration (2)
    • Renting (3)
    • Safety (75)
    • Teen Drivers (1)
    • Travel (5)
    • Weather (22)
  • Uncategorized (6)

Search for…

Footer

Eagle Trust Insurance

125 CambridgePark Drive, Suite 301
Cambridge, MA 02140
Phone #: (617) 625-8400
Toll-free #: (800) 390-1446
Fax Number: (617) 625-8424

Office Hours:
Monday-Friday 9am-5pm
After-hours: Calls will be handled by our emergency call center

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Quicklinks

  • Make a Payment
  • Report a Claim
  • Manage Your Policy
  • Get a Quote
  • Contact Us

Insurance Products

  • Auto Insurance
  • Homeowners Insurance
  • Business Insurance
  • Life Insurance
  • Condo Insurance
  • Renters Insurance
MA
  • Log In
  • Not Enrolled? Learn More

Copyright © 2023 · Eagle Trust Insurance · Powered by Lanergy Solutions · Log in