Gap Insurance: Carmax Coverage?

If you're wondering whether you have gap insurance for your CarMax vehicle, there are a few ways to find out. Firstly, check your current car insurance policy or the terms of your lease or loan. Gap insurance is often offered as an optional add-on by insurers or dealers, so it's worth reviewing your documents to see if you already have this coverage. If you're unsure, you can contact your insurance agent or company to confirm. Additionally, if you financed your vehicle through CarMax, you may have purchased GAP coverage as part of your financing plan. This information should be available in your sale documents. It's important to know that gap insurance covers the difference between your vehicle's actual cash value and the amount you owe, which can be especially useful if your vehicle is involved in a total loss incident.

Check your car insurance policy or lease/loan terms

To check if you have gap insurance, you can refer to your car insurance policy or the terms of your lease or loan. Gap insurance is typically offered as an optional add-on by insurers or dealers, so it's important to review your policy or lease/loan terms carefully. Here are some detailed steps to guide you through the process:

Check Your Car Insurance Policy:

• Review your car insurance documents thoroughly: Look for a page that lists the coverages included in your policy. Gap insurance is usually listed as an optional coverage, along with other types of coverage such as auto collision coverage and comprehensive car insurance coverage.
• Contact your insurance agent or company: If you're unsure whether you have gap insurance, reach out to your insurance agent or company. They can provide you with specific information about your policy and confirm if gap insurance is included.

Check the Terms of Your Lease or Loan:

• Review your lease or loan documents: Gap insurance may be included as part of your monthly loan payments or lease terms. Check your sale or financing documents to see if gap insurance was added by the dealer or lender.
• Understand the difference between gap insurance and a gap waiver: While both provide financial protection, a gap waiver is typically included in lease contracts and pays the difference between the car's market value and your remaining principal. Gap insurance, on the other hand, is a separate insurance policy.
• Consider the age and condition of your car: If you have an older car or one with significant mileage, the need for gap insurance may be lower as the gap between the loan amount and the car's value narrows over time.

Remember, gap insurance is designed to protect you in the event of a total loss or theft of your vehicle. It covers the difference between the outstanding loan or lease balance and the depreciated value of the car. By checking your insurance policy and lease/loan terms, you can confidently determine whether you have gap insurance and make an informed decision about adding or removing it from your coverage.

Contact your insurance agent or company

If you are unsure whether you have gap insurance, it is a good idea to contact your insurance agent or company. This is especially important if you know you initially bought gap insurance but are unsure whether you still have it. Your insurance agent or company can confirm whether you have this coverage.

When you contact your insurance agent or company, they will be able to review your policy and determine if gap insurance is included. It is helpful to have your policy number and other relevant information ready when you make the call. This will make it easier for the agent to look up your policy and provide you with the information you need.

If you financed your vehicle through a dealership or lender, they may also be able to provide information about whether gap insurance was included in your loan payments. In some cases, dealerships or lenders automatically include gap coverage in the monthly payments. Therefore, it is worth checking with them as well as your insurance company to get a clear understanding of your coverage.

Additionally, if you have a lease agreement, reviewing the terms of your lease can help determine if you have gap insurance. Some lease contracts include a ""gap waiver" clause, which is not the same as gap insurance but provides similar protection by covering the difference between the car's market value and your remaining loan balance.

By taking these steps and contacting your insurance agent or company, you can confidently know whether you have gap insurance and make informed decisions about your coverage.

Check your sale documents

To check if you have gap insurance, you must first determine where you got it. You might have gap insurance from the dealership, from your insurance, or from your lease agreement. If you know you initially bought gap insurance but are unsure whether you still have it, you can check by calling your agent or insurance company. If you're unsure where you got your gap coverage, you'll likely need to check several places to get a definitive answer.

If you think you have gap insurance from the dealer, you can find information about what's included in your sale documents. If you financed through a bank or other lender, check the documents from both the dealer and the lender. Either of them might have included gap coverage automatically. Many dealers will automatically include gap coverage, but you can decline their coverage if you prefer to buy through your insurer or if your loan terms don't require gap coverage.

If you believe you have gap insurance through your auto insurance policy, check your car insurance documents. These documents generally have a page that lists the coverages on your policy, including optional coverages like auto collision coverage and comprehensive car insurance coverage. Look for gap coverage in this list.

Some lease contracts include a clause called a "gap waiver" in their terms. While it's not gap insurance per se, it does pay for the difference between the car's market value and your remaining principal. Check the terms of your lease to see whether your contract includes this provision.

Check your car insurance documents

To check if you have gap insurance, you should start by checking your car insurance documents. Car insurance documents generally have a page that lists the coverages included in your policy, including optional coverages. Look for gap insurance in this list. If you are unsure, you can call your insurance agent or company to clarify.

Gap insurance, also known as guaranteed asset protection (GAP) insurance, covers the difference between your vehicle's actual cash value and the amount you currently owe for it. This type of insurance is particularly useful if you have a new vehicle, as new vehicles tend to depreciate quickly as soon as they are driven off the lot.

If you have gap insurance, it may have been purchased from the dealership, your insurance company, or your lease agreement. Some dealers include gap insurance as part of your monthly loan payments, so check your sale documents. If you financed through a bank or other lender, check the documents from both the dealer and the lender, as either of them may have included gap coverage automatically.

Additionally, some lease contracts include a clause called a "gap waiver," which is not the same as gap insurance but serves a similar purpose. A gap waiver will pay for the difference between the car's market value and your remaining principal, so check your lease terms to see if this provision is included.

If you are still unsure whether you have gap insurance or not, it may be a good idea to contact your insurance provider or dealer to discuss your options. They can help you determine if you already have gap insurance and, if not, provide information about adding it to your existing policy or purchasing a separate policy.

Check your lease agreement for a gap waiver

To know if you have gap insurance from CarMax, you can check your current car insurance policy or the terms of your lease or loan. Gap insurance is usually offered as an optional add-on by dealers or insurers. If you bought gap insurance and are unsure if you still have it, you can call your agent or insurance company to check.

A gap waiver, also known as a gap addendum, is a supplement that you can add to your auto loan or lease agreement. It is a debt cancellation agreement that absolvess you from paying the difference between what you owe on your vehicle and its market value if the vehicle is declared a total loss. This difference is known as the "gap".

Gap waivers are offered by your creditor or finance company when taking out an auto loan or refinancing. They are typically included as part of the lease agreement or offered as a product called loan/lease coverage. Check the terms of your lease agreement to see if it includes a gap waiver clause.

Gap waivers are paid for upfront when taking out a loan or refinancing, and the cost is commonly added to your auto loan. As a result, you will have coverage for as long as your loan is in place, provided you adhere to the contract terms. The gap waiver number can be found in the contract you signed when you leased or financed your car.

Gap waivers and gap insurance policies function similarly, covering the difference between what you owe and the car's actual cash value if the vehicle is stolen or totalled. However, a key difference is that gap waivers are attained through your lender or lease company, while gap insurance is typically an added coverage on your auto insurance policy or available through the dealership.

Frequently asked questions