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MI Auto Insurance: Filling the Gap with Guaranteed Auto Protection

Posted on: Monday, July 20th, 2015

Your current auto insurance serves as your safeguard in case of total vehicle loss. But what if the insurance proceeds are not enough to pay off the outstanding balance or lease payments on your vehicle? There remains an obligation for you to pay the deficiency. In this case, you may want to get additional coverage, specifically the Guaranteed Auto Protection (GAP), for extra security. Here in Michigan, Allied Insurance Managers can provide you this supplemental coverage.

As with all types of policies, GAP insurance has its limitations. Generally, it excludes overdue payments; penalties due to excessive use; carry-over balances from past loans and leases; deductions for wear and tear, towing, storage, and prior damage by the main insurer; add-on installations to the car; and insurances purchased along with the loan or lease. Nevertheless, conditions vary between insurers so it pays to fully understand the terms first and evaluate carefully if the policy presented suits your requirements and expectations. GAP car insurance contracts here in Michigan are regulated by the Michigan Insurance Bureau, so if you’re considering purchasing one, make sure that it’s fully approved.

Now you may be thinking, “Where can I buy this type of coverage?” Some dealers do offer GAP or work with an outside agency that sells them. Convenient as it may sound, however, this insurance setup has always been surrounded by controversies involving consumer abuse. Accusations include coverage misrepresentations, force placed insurances, Truth in Lending and Lemon Law violations, packing of unrequested items into the loan, payment avoidance, non-disclosure of full vehicle histories, and many more. Thus, it would no longer be a surprise if GAP finds its way to the list of auto sales abuses soon.

Fortunately, consumers are now allowed to purchase GAP contracts directly from auto insurance providers. This means you can deal directly with us at Allied Insurance Managers without having to go through your dealer’s agency.

Founded in 1912, our company has become one of the most reputable and established agencies here in Michigan. We offer a broad range of policies that serve the needs of both businesses and individuals from various industries. We provide personalized service, and we aim to be every client’s trusted insurance advisor. You can easily reach us through the various channels noted in our “Contact Us” section.

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Jayson Bass

Jayson has a proven track record of dedication and commitment to excellence. He takes great pride in helping business owners develop a strategic plan to help them achieve their risk management objectives and reduce their overall cost of insurance.
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