What is Gap Insurance?

February 19th, 2019 by

What is Gap Insurance?

When you buy a new car or a new truck from Allen Samuels Auto Group you’ll have a number of finance and insurance options to choose from. Gap insurance is one of these options. So what exactly is gap insurance? The simplest explanation is that it covers the gap between the amount you owe on a vehicle and its actual cash value in the event of an accident. Learn more about gap insurance to find out how the coverage will benefit you.

What Does Gap Insurance Cover?

It is important to know that gap insurance covers damage to your vehicle only, and does not cover property or bodily injury. Take a look at exactly what gap insurance does and does not cover:

Gap Insurance Covers:

  • Theft
  • Fire
  • Vandalism
  • Accident
  • Acts of nature (tornado, hurricane, flood, etc.)

Gap Insurance Does NOT Cover:

  • Deductible (though some gap insurance policies allow this)
  • Engine failures and other mechanical repairs/malfunctions
  • Death
  • Extended warranties

Gap insurance is meant to provide coverage if your vehicle is “totaled” in an accident. It’s a good idea to talk to your insurance agent to get the details and decide whether it is a good option for you.

Do I Need Gap Insurance?

You are not required to have gap insurance, but it is recommended. The coverage provides an extra level of peace of mind and can help you to save money if your car is damaged or totaled. Our finance specialists will be happy to discuss the advantages of gap insurance and answer any questions you may have.

Explore Your Insurance and Finance Options at Allen Samuels Auto Group

Choosing the right insurance coverage will save you time, trouble, and money in the long run, so it’s important to know what your options are. Explore our new vehicle inventory, then visit the Allen Samuels dealership near you to learn more about the available auto financing packages and insurance plans so you can make an informed decision about what’s best for you.

Find out whether buying or leasing a vehicle is right for you, and if you are considering a pre-owned model, check out our guide to good mileage on a used car! You might also be wondering, “Are Jeeps safe?” We have all the answers you need!

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    When you buy a new car or a new truck from Allen Samuels Auto Group you’ll have a number of finance and insurance options to choose from. Gap insurance is one of these options. So what exactly is gap insurance? The simplest explanation is that it covers the gap between the amount you owe on a vehicle and…

Posted in Finance