What is Gap Insurance?

When you buy a new vehicle, you might be offered needless services or coverage. This makes some Devine drivers wonder, "What is gap insurance?" Gap insurance, or "guaranteed asset protection," is insurance that covers the difference between the cash value of your car and the amount still owed on it. Learn more about the ins and outs of gap insurance with the finance team at Brown Dodge Chrysler Jeep Ram.

Is Gap Insurance Worth It?

Gap insurance can be applied to a new vehicle with either a lease or a loan. While gap insurance isn't necessary, it is a smart investment to make. Given its generally low cost and wide scope of coverage, most Devine shoppers and finance experts agree that gap insurance is worth having.

Do I Need Gap Insurance?

Is gap insurance worth the extra cost? Both Castroville drivers and experts agree that gap insurance is a smart investment. Learn more about how gap insurance protects you on your daily Lytle commutes below:

• Depreciation happens the moment you drive off the dealership lot.
• As soon as you drive off the lot, the vehicle is your financial responsibility – and accidents can happen at any time
• Most insurance companies only cover what your vehicle is worth at the time of the accident, leaving you with the remaining balance to pay off
• Gap coverage accounts for that difference. If your new car is totaled or stolen, and you owe more on it than its current deemed value, you don't have to worry.
• The cost of gap insurance is relatively low, and it is easy to obtain, so there is really no reason NOT to have it.

What Does Gap Insurance Cover?

So, now that we know that gap insurance is worth it, it's essential that we understand what it covers. So, what is gap insurance on your car? This type of insurance exclusively covers damage to your new or pre-owned Chrysler, Dodge, Jeep, Ram car, truck, or SUV. This type of insurance does not cover property damage or bodily injuries. Find out exactly how much gap insurance is capable of covering and what it's not below:

Gap Insurance Covers:

• Theft
• Fire
• Vandalism
• Accident
• Acts of Nature (Flood, Hurricane, Tornado, etc.)

Gap Insurance Does NOT Cover:

• Deductible (Though Some Gap Insurance Policies Allow This)
• Engine Failures and Other Mechanical Repairs/Malfunctions
• Death
• Extended Warranties

So, to summarize what gap insurance is on your car: gap insurance is a type of insurance that covers total loss in the event of an accident. Although it's considered optional coverage, gap insurance is worth it if you frequently drive in inclement weather or hazardous road conditions throughout the greater San Antonio area.

How Do I Buy Gap Insurance?

Now that you've decided that gap insurance is a worthy investment, how do you buy gap insurance? There are several easy ways to get gap coverage near Hondo:

• You can purchase it from your regular auto insurance company for as little as $20 per year.
• Or you can buy it for a one-time fee from your dealership or car loan company.
• You can also buy gap insurance from a specialized GAP insurance company for a one-time fee.

Contact the Finance Team at Brown Dodge Chrysler Jeep Ram

Now that you know the advantages of gap insurance, don't hesitate to contact us at Brown Dodge Chrysler Jeep Ram with any other finance questions! Need financing? Apply for financing online and get pre-approved today!