Is RV GAP Insurance Worth It? 

RV enthusiasts can tell you that purchasing an RV for the first time can be a nerve-wracking experience but one that conjures visions of hitting the road and embarking on unforgettable adventures. But before those visions become reality, you gotta sign on the dotted line! One of the many things you’ll have to consider with your purchase is RV GAP insurance. Now, you might be wondering, “Is it worth it?” Let’s find out. 

Understanding GAP Insurance

First things first, let’s demystify GAP insurance. GAP stands for Guaranteed Asset Protection. In a nutshell, it helps bridge the gap between what you owe on your RV and its actual value at the time of an incident. Unfortunate accidents or theft can happen, and your insurance company may offer you less than what you still owe on your rig. That’s where GAP insurance steps in to provide financial coverage, helping you pay off your loan or deductible. It’s like having an extra safety net for your financial well-being.

When to Sign Up for GAP Insurance

GAP insurance becomes particularly beneficial in a few scenarios. If your down payment was less than 20% of the total cost or if your loan term exceeds 60 months, it’s a clear indication that GAP is worth considering. It’s an investment that can save you from unexpected financial burdens down the road.

The Benefits of RV GAP Insurance

Imagine this scenario: You’re happily exploring the scenic countryside when an accident or theft occurs and leaves your beloved RV damaged or missing. Without GAP insurance, you could find yourself in a sticky situation where your insurance payout falls short of what you still owe on your rig. You’d be left with lingering debt, which no one wants or needs.

GAP insurance, however, can cover the difference between what you owe and what your RV is worth, even up to 130% of its market value at the time of purchase. You’d be able to pay off your loan in full, regardless of the insurance payout shortfall. It’s peace of mind on wheels!

On the flip side, without GAP insurance, you could end up making monthly payments on a rig you no longer have or deplete your hard-earned savings to settle the debt. Defaulting on the loan is an option best avoided, as it can leave a negative mark on your credit. 

Ultimately, GAP insurance protects your cherished home-on-wheels and is a small investment to safeguard your financial well-being, making it worth it to buy! Have you purchased GAP insurance before on your rigs? What did you find helpful about it? Let us know in the comments or contact us today!