What is GAP Insurance?
Making sure you’re covered when things don’t go according to plan.
Whether you’re a first-time car buyer, or someone who’s purchased several cars over the years, the process can, at times, feel a bit overwhelming. There’s a lot to know, and there are a lot of decisions to make, from choosing the right make and model for your lifestyle to dialing in the deal that works best for you. Even once you’ve sealed the deal, there are additional service and protection plans that can help protect your investment and save you money throughout your ownership. But exactly what do these plans entail? And which ones might be right for you? Don’t worry, we got you.
In our effort to make car buying easier and help you buy smarter, we want to provide you with tools and resources to inform you throughout your journey. After all, knowledge is power, and the more you know, the more confident you’ll feel driving off in your new ride. What a feeling! For this reason, we’ve created a handy series that defines and details each of the services and protection plans, and if you should consider purchasing them.
No one wants to think about the possibility of totaling their car. But it can happen, and it’s best to be prepared. If you’re leasing or financing a new vehicle, and it is totaled, or if it’s stolen and never recovered, your auto insurance will pay what your car is worth at that moment in time. This may end up being less than what you still owe on it, leaving you to pay the difference out of your own pocket. That’s where GAP Insurance comes in. It can cover the difference between what you owe on your car, and what your insurance company pays you for it. You might want to think about buying GAP Insurance if you’re leasing the vehicle, your down payment was less than 10 percent, or your auto loan is 60 months or longer. Because it’s no fun to still be paying for a vehicle that you can’t drive.