If you drive a car in the state of Arkansas, you’re required by law to purchase auto insurance. Many people have questions about their auto insurance policies. If you live in the Northwest Arkansas area, our team at Adams Insurance & Financial looks forward to meeting you and answering any insurance questions you may have. We’ve been working with clients in your area since 2023.
What is GAP Insurance?
One term you may hear when shopping for insurance is GAP Insurance. This term doesn’t refer to traditional auto insurance but to an addendum to your car purchase contract. The purpose of GAP Insurance is helpful if your car is involved in an accident and is declared a total loss. The policy is designed to cover the difference between the maximum amount your insurance will pay for your car’s damages and the amount you still owe on the car.
According to the Attorney General of Arkansas, buying GAP insurance is optional. The same website reports GAP insurance may not be necessary if you make a down payment of more than 20% of the car’s estimated value. The GAP insurance must be listed separately from the main part of the payment contract. According to the Attorney General, car buyers who drive a lot each year may especially benefit from purchasing GAP insurance, as a car’s value depreciates quickly with increased mileage.
Call Us Today for Your Appointment
Arkansas law requires you to buy car insurance, but you have a choice about how to customize your insurance. Clients in Northwest Arkansas can feel confident when they trust our team to meet their insurance needs. At Adams Insurance & Financial, we are dedicated to exemplary customer service. Call us to schedule an appointment today, and let’s discuss your auto insurance.
