Were you about to shut down your computer after a long day of shopping online for car insurance? Happy that you have found the cheapest auto insurance for that new car you plan to buy tomorrow, you may be lulled into a false feeling of security. I know - you covered all the bases - you got the low insurance premiums you wanted on comprehensive and collision. Heck, you even got roadside assistance! What's the problem? The problem is that you (and many new car buyers) assume that your auto insurance will cover the entire value of your car should it be totaled or stolen. This assumption fails to account for something that the auto insurance company does: depreciation.

The sad truth of the new car buying experience is that the cash value of your vehicle drops significantly (as much as 30% on some models) the moment you drive it off the sales lot. What if, after only four or five months your new ride is stolen or crushed by a runaway SUV? The insurance you so diligently searched for online will only pay you for the current cash value - not the amount that you paid - even worse the settlement you get may be far less than what you still owe on the car! This is where auto GAP (Guaranteed Auto Protection) insurance comes in to play. Automobile GAP insurance will cover the difference between what you owe on your (former) car and what your online auto insurance company will offer you for settlement. If you had also shopped for auto GAP insurance online (or verified that the new policy you bought offers auto GAP insurance) you would be all set. Most people miss this point - especially those who buy auto insurance online.

GAP insurance isn't only available for automobiles. There are many different types ranging from motorcycle GAP insurance to travel GAP insurance. The lesson here is to always be sure you are fully covered by any insurance that you purchase. Make sure you have all the GAPs covered!