Is Gap Insurance Worth It?

Tiny car with insurance documents

Ready to drive a new car around Mansfield? Not only will you have to research vehicle options and financing plans, but you will also have to explore insurance coverage before you hit the road. While comprehensive insurance coverage is usually a given, there are some optional forms of insurance to consider, such as gap insurance. Gap insurance is not obligatory, but it is a type of coverage that is useful for drivers who finance their vehicles. So, is gap insurance worth it? Learn about what gap protection is and why it is valuable in this guide from Spitzer Motors of Mansfield CDJR.

What Is Gap Insurance on a Car?

Gap insurance on a car covers the “gap” in what your vehicle is currently worth and the amount you still owe on your car loan. Many Ashland-area buyers and insurance experts recommend purchasing gap insurance, because it is usually low cost and will provide extensive savings in the event of a collision. If your car is totaled and is valued less than what you owe on your loan, then you will be responsible for the difference, even without the car to drive. However, with gap insurance, this difference won’t be yours to pay, and you’ll have the opportunity for a fresh start.

More About Gap Protection

What is gap protection? Get some more information about gap insurance below.

  • Gap insurance stands for Guaranteed Asset Protection insurance.
  • Gap insurance applies to vehicles that are either leased or financed.
  • Gap insurance applies in instances of theft, fire, vandalism, collision, and acts of nature, such as a tornado, hurricane, or flood.
  • Keep in mind that gap insurance doesn’t cover bodily injury or property damage.

What Makes Gap Insurance Worth It

Here are some reasons why drivers believe gap insurance is worth it:

  • Vehicle depreciation occurs as soon as you drive off the lot, especially with new cars. That means there will already be a difference between your loan balance and car value.
  • Accidents are unpredictable and can happen at any time. You may never get into a collision, or find yourself in one just days after buying your car.
  • Most insurance companies only cover what your vehicle is worth at the time of the accident.
  • Gap insurance is a relatively low-cost insurance coverage plan and it’s easy to obtain from your local Galion insurers.

Learn About All Your Insurance Options with Spitzer Motors of Mansfield CDJR

Is gap insurance worth it? Get more details about gap insurance and its benefits with Spitzer Motors of Mansfield CDJR. Contact us today with any questions!

 

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