Motorcycle accident insurance covers the cost of damages to your bike in the event of an accident or theft. But what happens if the cost of repairs or replacement exceeds the value of your motorcycle? That's where Gap insurance comes in. GAP stands for “Guaranteed Asset Protection” and it's an additional policy that covers the difference between the balance of your loan and the value of the bike itself in the event of a total loss. Gap insurance is an optional coverage that applies if your motorcycle is stolen or is considered a total loss.
It's important to note that some states, including California, allow insurance companies to issue contracts with text that excludes coverage if you are found guilty of driving a motorcycle under the influence of alcohol or drugs. In this article, we'll review a brief overview of GAP motorcycle insurance to help you decide whether or not to opt for that additional protection.
What Does Gap Insurance Cover?
Gap insurance covers the difference between what you owe for your motorcycle and what it's worth if it's stolen or added to the total in an accident. Emergency motorcycle insurance covers the difference between the depreciation of the motorcycle and the cost of financing you paid at the dealership.Some insurance companies will pay the difference between the fair market value of a motorcycle and the balance of your loan if added to the total. Motorcycle emergency insurance sometimes has other restrictions and limits, and may only cover certain types of losses.
Do I Need Gap Insurance?
The best insurance to cover additional expenses for motorcycles will reduce the risks of loss if the motorcycle is wrecked while you owe more than it is worth. Adding emergency motorcycle insurance could save you thousands of dollars if you have an accident. If you owe a big deal on your motorcycle loan or just get the most out of your bike, GAP insurance could save you money.If you decide to lease a motorcycle instead of buying it, you may still need supplemental insurance to protect your finances. Most drivers take out emergency insurance with the same company from which they get full coverage for the purchase of a financed motorcycle. Gap insurance isn't required for any insurer or for any state, but some leasing companies may require you to buy it.
Conclusion
Gap insurance is an important form of protection for those who own or lease a motorcycle. It can help cover any financial losses that may occur due to theft or an accident, and can save you thousands of dollars in repairs or replacement costs.Be sure to check with your insurer to see if gap insurance is available and if it's right for you.
