Is Gap Insurance Worth It?

When you buy a new vehicle in Council Bluffs, you will be offered multiple insurance coverage options. One of these options will be gap insurance. While gap insurance may seem like just another service that’s being offered to you, it’s actually a very important policy to consider. Read more about gap insurance below with Edwards Chrysler Dodge Jeep Ram FIAT. If you have specific questions about gap insurance, feel free to contact us.

What is Gap Insurance on a Car? 

While car shopping in Omaha, you may be asking, “What is gap insurance on a car?” Gap (Guaranteed Asset Protection) insurance covers the difference between the cash value of your car and the amount still owed on it. For example:

• You owe $15,000 on a vehicle, but there’s an accident and the car is a total loss.
• Your car insurance pays the ACT (actual cash value) of $10,000, however, you still owe $5,000 on your loan.
• The difference of $5,000 is paid for by your gap insurance. 

As you can see, gap insurance can be an incredibly useful policy so you don’t end up owing money for a car you no longer possess. Gap insurance policies can be applied when you’re financing or leasing a vehicle.

Should I Buy Gap Insurance?

So, considering the example above, is gap insurance worth it? Consumers and auto experts agree that purchasing gap insurance is worth the extra payment each month to protect yourself on Bellevue roads. Here are a few reasons why you should get gap insurance for your La Vista commutes:

• Depreciation of a new car happens the moment you drive it off the dealer lot. Gap insurance will help cover that loss if there is an accident. 
• Accidents can happen at any time, and you don’t want to be stuck paying for a vehicle that you can no longer drive.
• Insurance will only cover what your vehicle is worth at the time of the accident, not what you originally paid for it.
• Gap insurance will cover the remainder of your loan if your car is totaled or stolen. 
• Gap insurance is not as expensive as you might think, and it’s very easy to obtain. 

How Do I Get Gap Insurance?

Gap insurance coverage may sound like a hassle to get, but it’s actually quite easy! Here are some ways to obtain gap insurance coverage:

• Your regular insurance company may offer it for as low as $20 a year.
• You may be able to buy it from the dealership or car loan company for a one-time fee.
• A specialized gap insurance company will sell it to you for a one-time fee.

Finance Your Vehicle With Edwards Chrysler Dodge Jeep Ram FIAT!

Now that you know more about what gap protection is, visit us at Edwards Chrysler Dodge Jeep Ram FIAT to browse our new vehicle inventory and discuss your gap insurance and finance options with our finance center! Don’t forget to check our new vehicle specials to ensure that you get a great deal on your new car!