What is GAP insurance on a car? This is a question that many drivers ask us as it’s not often discussed when you are setting up the paperwork to take home your new Toyota to Cleveland. Guaranteed Asset Protection, or GAP, is a type of insurance that provides coverage for the difference between the value of a car and the balance still owed on it. If you’re curious about what is GAP insurance and what it covers, read on to learn more from the experts at our Brook Park finance center. If you find that you still have questions by the end, then don’t hesitate to contact us.
Yes, GAP insurance is worth it. It’s not required, but it does offer extra protection for your investment if something unusual occurs, such as theft or fire. Your vehicle begins to depreciate as soon as you drive off the lot, and GAP insurance covers the “gap” between your car’s worth and what the insurance company will cover if you ever find yourself in an Parma accident or dealing with circumstances that are out of the ordinary.
What is GAP protection and what does it cover? In addition to covering the difference between the value of your car and what you still owe on it, GAP insurance goes a bit further. It doesn’t cover bodily injuries, mechanical repairs, or the deductible, but it does cover the following:
GAP insurance can provide added peace of mind by covering damages from the above-listed situations. You never know when you’ll need it, so it’s a good form of insurance to have for when/if the unexpected occurs.
Getting GAP insurance is easy. You can acquire it through your auto insurance provider via a dealership or a company that specializes in auto coverage. Coverage usually costs around $20 a year plus a one-time charge at the time of purchase.
Do you have additional questions about topics related to finance and insurance? Check out our car buying tips, where you can learn more about the car-buying process, insurance, and more. Or you can trust that our team of finance professionals can help you with every question you have in person. All you need to do is come by our dealership near Brunswick today.
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