What is Gap Insurance?

When taking home a new vehicle at Marine Chevrolet, you have several decisions to make in terms of financing and insurance coverage. One choice you will need to make is whether you plan to purchase gap insurance. But what does gap insurance do? Put simply, it covers the “gap” between what you owe on your vehicle and what it is actually worth at the time of a collision. This insurance is also referred to as GAP insurance, meaning Guaranteed Asset Protection. 

Take some time to learn more about what coverage includes and why it can be a smart investment for many drivers in and around Camp Lejeune.

What Does Gap Insurance Cover?

Gap insurance covers a range of issues related to your vehicle, however, it only covers damage to your own vehicle – not property or bodily injuries. So, what does gap insurance cover exactly? Browse gap insurance coverage below:

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

So what does gap insurance do? It is designed to cover total loss in the event of an accident when you owe more than your vehicle is worth. Though it is an optional coverage, it is an affordable way to have added peace of mind on the roads of Sneads Ferry and Swansboro.

Do I Need Gap Insurance?

While gap insurance is not required, it is highly recommended when you’re buying a new car, truck, or SUV. For example, if you are involved in a collision early on during your vehicle ownership, it is likely that if the car is totaled, you still owe more on it than it is currently worth. Gap insurance can help to cover that amount so you are not stuck paying for the damage out of pocket. Gap insurance is especially helpful if you can purchase a plan that includes deductible coverage. 

Learn More About Your Insurance Options with Marine Chevrolet

If you still have questions about gap insurance or any other finance topics, our finance department at Marine Chevrolet is more than happy to help you learn everything you need to know. Contact us with any questions.