What Is A Gap Cover?

How much does gap insurance usually cover?

Gap insurance only fills the gap between the actual cash value of a car at the time of a claim and the current amount still owed on a car loan.

The specific gap policy covers, for instance, $4,000 on a vehicle assessed at $16,000, but with $20,000 still to be paid on the loan..

What does gap cover mean?

Gap insurance is an optional car insurance coverage that helps pay off your auto loan if your car is totaled or stolen and you owe more than the car’s depreciated value. … Gap insurance helps pay the gap between the depreciated value of your car and what you still owe on the car.

What is medical aid gap cover?

Medical Aid Gap Cover covers the gap between what a health practitioner charges and the amount your Medical Aid is willing to pay. Don’t put yourself at risk of being in need of financial assistance, should your Medical Aid not cover all your healthcare costs.

Why do I need gap cover?

Gap cover serves to guard you in the event Doctors charge above your medical aid rate of cover and a shortfall is incurred after medical aid pays from the risk or hospital benefit.

Does gap cover cover medication?

However, Ricky says it’s important to understand that gap cover will never cover something that your medical aid excludes (cosmetic surgery, for instance). It only tops up a shortfall on approved procedures, specialists or medications. … tariff gap cover for up to 500% of medical aid rates.

Does Gap Insurance always pay out?

Gap insurance will pay the difference between the amount you still owe on a vehicle and actual cash value (ACV) paid out by your car insurance company. Lease/loan coverage typically has limitations on how much it will payout, such as 25% over the determined ACV of your vehicle.