What is gap insurance and does it cover medical expenses?

Gap insurance and medical insurance are completely separate things with no overlap. Gap insurance (Guaranteed Asset Protection) covers the difference between what you owe on a car loan and what the vehicle is worth if it's totaled or stolen. Medical insurance covers healthcare costs from accidents or illness. If you're in a car accident, your auto insurance handles vehicle damage, and your health insurance handles medical bills—gap insurance doesn't touch either one. Many people confuse gap insurance with medical coverage because both relate to accidents, but they serve different purposes. Gap insurance only protects your loan balance. For example, if you owe $25,000 on a financed car that gets totaled and is worth only $20,000, gap insurance pays that $5,000 gap. Medical payments coverage (part of your auto policy, typically $1,000–$5,000) is what actually covers injuries from a crash, and it's separate from gap insurance entirely. If you're financing a car in Florida, lenders often require or strongly recommend gap insurance, especially on $0-down deals where you're underwater on the loan from day one. When Elite Edge shops your loan with multiple lenders, we make sure you understand what's included and what's optional so you're not paying for coverage you don't need. Your next step is to get pre-qualified and ask about gap insurance options when we discuss your loan terms. Use the 60-second Pre-Qualify at eliteedgeautobroker.com/PreQualify or text (954) 907-2386 to talk through what protection makes sense for your situation.

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