If you’re in the process of buying a new vehicle, you’ve probably discovered that there’s a lot to navigate when it comes to the different kinds of insurance you’ll need to protect your investment. Liability, collision, comprehensive, and GAP insurance are all important pieces of a full coverage package that protects you from costs related to vehicle damage or theft.
So where does GAP insurance fit in? Classic GAP Insurance, or Guaranteed Asset Protection Insurance, is add-on insurance that covers the difference between your vehicle’s value and the balance you still owe on it. For more details, read on for a GAP insurance overview from Bettenhausen CDJR, check out more car-buying tips, or reach out to our Finance Center to speak one-on-one with an expert.
So, what is GAP insurance on a car going to cover? GAP Insurance protects you from a range of incidents that would impact your vehicle’s value. You’ll need comprehensive coverage to be protected from the cost of hospital bills or mechanical repair, but GAP insurance protects New Lenox drivers from:
GAP insurance is a necessity for two types of Orland Park drivers: those who are leasing, and those who are financing. This is because your vehicle’s value begins to depreciate the second you drive it off the lot, and experiences especially quick depreciation within the first two years of ownership. As a result, you may owe more on your vehicle than it is currently worth. If you experience a total loss — your vehicle is damaged beyond repair or stolen — then owing more than your vehicle is worth is a serious problem. Your typical insurance will only pay the vehicle’s sticker price, minus depreciation — leaving you to cover the remaining amount on the loan for a car that doesn’t exist anymore! If you anticipate a longer-term loan repayment, it’s a good idea to get GAP insurance and avoid this scenario.
New Lenox-area drivers can buy GAP insurance through a business that deals explicitly with auto coverage — or go directly from a local dealership like Bettenhausen CDJR! To learn more, stop by our Finance Center, where we’ll work with you to craft an insurance package that fits your needs. GAP insurance can cost as little as $20 a year, plus a one-time fee at the time of purchase.
If you’re ready to complete your vehicle purchase with a great insurance package, get in touch with the Finance Center at Bettenhausen CDJR. Our knowledgeable staff is standing by to help answer any car-buying questions, including how credit affects your loan, how to take advantage of our 0% APR for 84 months and no payments for 90 days vehicle special, and how to decide whether to lease or buy your new vehicle.