Farm Bureau's Gap Insurance: What You Need To Know

Farm Bureau offers Guaranteed Asset Protection (GAP) insurance for automobiles (cars, SUVs, minivans), light-duty trucks, boats, motorcycles, Jet Skis, golf carts, ATVs, snowmobiles, and recreational vehicles (RVs). This insurance covers the difference between the insurance settlement and the outstanding loan balance in the event of total loss or theft. It is available on most new and used vehicles and can be added to your loan and included in your monthly payment. Farm Bureau also offers a range of other insurance products, including liability coverage, collision coverage, medical or no-fault coverage, and uninsured and underinsured motorist coverage.

Farm Bureau Insurance offers protection for a range of vehicles, including motorcycles, boats, and RVs

Farm Bureau Insurance offers a range of protections for vehicles, including Guaranteed Asset Protection (GAP) insurance. This covers financial losses in the event of a total loss or theft, paying the difference between the insurance settlement and the outstanding loan balance. GAP insurance is available for automobiles, trucks, motorcycles, boats, RVs, and powersports vehicles.

In addition to GAP insurance, Farm Bureau Insurance provides comprehensive coverage for motorcycles, including protection from damage caused by fire, theft, hail, vandalism, and other unforeseen situations, as well as collision coverage. They also offer affordable rates and personalized local service.

For boat owners, Farm Bureau Insurance offers specialized coverage that takes into account factors such as the type of boat, ownership, and location of use. Boat insurance covers liability for equipment and passengers, as well as physical damage, collision, fire, lightning, theft, and vandalism.

Farm Bureau Insurance also provides coverage for recreational vehicles (RVs). If you have auto insurance with them, you can simply add coverage for your RV to your existing Farm Bureau Member's Choice policy. This coverage includes protection for accidents, non-collision damage, medical and property liability, and uninsured or underinsured motorists.

GAP insurance covers the difference between the insurance settlement and the outstanding loan balance

Guaranteed Asset Protection (GAP) insurance is an optional insurance product that covers the difference between the amount you owe on your auto loan and the amount the insurance company pays out if your car is stolen or totaled. This is because standard auto insurance policies only pay the current market value of the vehicle at the time of a claim, which may be less than the amount you owe on the loan.

Farm Bureau Bank offers GAP insurance for automobiles (cars, SUVs, minivans), light-duty trucks, boats, motorcycles, Jet Skis, golf carts, ATVs, snowmobiles, and recreational vehicles (RVs) and travel trailers. The GAP insurance fees can be added to your loan and included in your monthly payment.

In the event of an accident, theft, or total loss of your vehicle, GAP insurance will cover the difference between the insurance settlement and the outstanding loan balance. This means that if you owe more on your loan than the current market value of your vehicle, GAP insurance will protect you from having to pay the difference out of pocket.

For example, if you have a total loss or theft of your vehicle and your insurance company pays you $10,000, but you still owe $12,000 on your loan, GAP insurance will cover the remaining $2,000. This can provide financial peace of mind and protect you from losing money if your vehicle is damaged beyond repair or stolen and never recovered.

GAP insurance is typically offered by car dealers when purchasing or leasing a vehicle, but it can also be purchased from your auto insurance company or direct lenders. It is important to compare prices and coverage before deciding whether to include GAP insurance in your loan.

GAP insurance is designed for drivers who finance their vehicles

Guaranteed Asset Protection (GAP) insurance is an optional form of financial protection for drivers who finance their vehicles. It covers the difference between the depreciated value of a car and the loan amount owed if the car is involved in an accident, stolen, or otherwise declared a total loss. This type of insurance is particularly relevant for those who have made little to no down payment on their vehicle, as well as those with long payoff periods, as they may owe more than the car's current value.

For example, if a driver purchases a new car worth $28,000 and makes a 10% down payment, their loan cost would be $25,200. With a five-year auto loan and a 0% financing deal, their monthly payment would be $420. After a year, they would have paid $5,040 and still owe $20,160. If the car is then involved in an accident and deemed a total loss, GAP insurance would come into play.

In this scenario, the insurance company calculates the current value of the vehicle, taking into account depreciation. If the car has followed the average depreciation rate, it would now be worth 20% less, or $22,400. The driver's GAP insurance would cover the outstanding balance on their loan, leaving them with $2,240 to put towards a replacement vehicle. However, if their car depreciated by 30%, their insurance payout would be $19,600, and they would owe their lender $560 without GAP insurance.

GAP insurance is available from various sources, including car insurance companies, banks, and credit unions, and it can typically be added to an existing auto insurance policy. It is worth noting that some lenders or leasing companies may require GAP insurance to protect themselves from car owners who might walk away from their financial obligations if their vehicle is totalled or stolen. Additionally, GAP insurance can be included in monthly loan payments and cancelled for a full refund within a specified period, usually 60 days.

GAP insurance is also useful when leasing a vehicle

Farm Bureau Bank offers Guaranteed Asset Protection (GAP) insurance for automobiles (cars, SUVs, minivans), light-duty trucks, motorcycles, Jet Skis, golf carts, ATVs, snowmobiles, and recreational vehicles (RVs). This type of insurance is also useful when leasing a vehicle.

GAP insurance is particularly relevant when leasing a vehicle because it can protect you from potential financial losses. When you lease a car, you don't own it outright, and you may be required to carry GAP insurance as part of your lease agreement. This insurance covers the difference between the depreciated value of the leased vehicle and the outstanding lease balance in the event of total loss or theft.

Leased vehicles often come with specific terms and conditions, including the requirement for GAP insurance. This type of insurance can help bridge the gap between the depreciated value of the car and the outstanding lease balance. It is designed to protect you from financial loss if the leased vehicle is damaged beyond repair or stolen and not recovered.

Additionally, GAP insurance can be beneficial when leasing a vehicle because it may help you avoid paying out of pocket in the event of a total loss. Without GAP insurance, you would only receive the depreciated value of the vehicle from your regular insurance policy, which may be less than the outstanding lease balance. GAP insurance covers this difference, ensuring that you don't have to pay additional costs.

Furthermore, GAP insurance can provide peace of mind and financial protection when leasing a vehicle. It is a valuable safeguard, especially if you made a lower down payment, have a longer financing term, or are driving a vehicle that depreciates faster than average. By having GAP insurance, you can rest assured that you are protected against potential financial losses associated with leasing a vehicle.

Farm Bureau Insurance provides a wide variety of coverage options, including liability, collision, and medical coverage

Liability coverage protects you if you cause damage to another person's property or injure someone with your car. Collision coverage, on the other hand, helps cover the costs to repair your car if it's damaged in an accident. If your car is damaged by something other than a collision, such as fire, theft, hail, or vandalism, Farm Bureau Insurance also offers comprehensive coverage.

In addition, they offer medical or no-fault coverage in all states where they do business, although the specifics may vary by state. This coverage can protect you and your passengers if bodily injury is caused by a driver without adequate insurance. Farm Bureau Insurance also provides uninsured and underinsured motorist coverage, so you can rest assured that you're protected in case of an accident with a driver who doesn't have enough insurance.

For added peace of mind, Farm Bureau Insurance offers replacement cost coverage. This means that if you have an accident with a car that's only a few years old, you won't have to settle for an older model as a replacement. Their Young Driver Safety Program is also designed to keep young drivers safe and offers a premium discount for drivers under 25 who complete the program.

Farm Bureau Insurance also provides exceptional claims service, so you won't have to worry about a lengthy back-and-forth with your insurance company if you're involved in an accident. Their local agents offer personalized service and support, ensuring that you get the assistance you need.

With a range of coverage options, add-ons, and discounts, Farm Bureau Insurance strives to provide comprehensive protection for you and your vehicle.

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