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What is GAP Insurance and Why Do You Need It?

Last updated 6 years ago

 Buying a brand new vehicle isn’t the best option for a lot of people. A new car has a big price tag, yet starts losing value as soon as you drive it off the lot. Each year, more and more drivers are turning to used car sales and car leasing as alternatives to buying a brand new car. These are both great choices, but you’ll have to make sure to do your research so you can be completely safe while on the road. One of the best ways to ensure your safety and security is by looking into GAP insurance.

 

GAP, or guaranteed auto protection, insurance is important for anyone leasing a car or buying a used car. This insurance is meant to take care of any financial costs that may be left over after an accident.

 

  • When a driver gets into a collision that causes a lot of damage or completely totals their car, their insurance company will come take an estimate of the value of the car.

 

  • The estimated value is typically much lower than the original cost of the car or lease.

 

  • Drivers are still making payments, meaning they owe more than the car is now worth.

 

  • There is often a big discrepancy, or gap, between the amount estimated by the insurance company and the value held by the car leasing agency.

 

GAP insurance pays the leftover difference, which can often be pretty high. This saves drivers from having to pay out of pocket for a car that is no longer worth what they’re paying. You never know when something unexpected might happen—which is why it’s important to be insured in case your new leased or used vehicle gets totaled soon after you get it.

 

If you’re looking for a reliable used vehicle, come see the selection here at Athans Motors. We pride ourselves on our BMW, Audi, Mercedes Benz, and Porsche repair and service. Come visit us today, and have a look at our inventory and insurance options!

 

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