A motorcycle may be one of the most exciting purchases you’ll ever make, but it also comes with hazards. Motorcycles may go unseen as motorists turn or switch lanes, and they may also depreciate faster than riders realize. Gap insurance, also seen as “GAP insurance,” can help protect your investment on the road and off. At Swartz Premier Group Insurance, we’ll fill you in on what gap insurance means and what it covers.
What Is Gap Insurance?
Gap insurance is the abbreviation for Guaranteed Asset Protection insurance. If you get a motorcycle policy with gap coverage, it means that your insurance pays you the difference between your remaining loan/lease balance and the actual cash value (depreciated value) of your motorcycle. If your motorcycle is considered a total loss due to a covered incident, gap insurance will cover any remaining balance on your loan or lease. In some cases, it might even cover your deductible.
Does Gap Insurance Cover Repairs?
No, it doesn’t cover repairs. Gap insurance in Moberly, MO, only covers a total loss, whether from theft or damage. For example, if your bike is stolen a year after you bought it for $18,000, and its value has dropped to $15,500 by then, gap insurance will cover the $2,500 difference left on your loan. Gap coverage can make up the difference, so you can buy a new bike and get back out there.
At Swartz Premier Group Insurance, serving Moberly, MO, our staff knows that financing a bike can be a great way to secure the motorcycle of your dreams. Contact us to learn more about protecting your motorcycle investment by adding gap insurance to your policy.
