Have you bought a new car and are now asking yourself, “What is GAP insurance?” GAP Insurance, short for Guaranteed Asset Protection Insurance, covers the value of your vehicle and the balance still owed on it at the time of trading, whether it’s a loan or lease. If you’re interested in applying for coverage or just wanting more information, contact us at Sussex Honda in Sparta Twp, where our finance team is ready to answer any of your questions.
What is GAP protection? As it covers the difference of your vehicle’s value with the amount you may owe for it, GAP insurance protects much more of your vehicle. It cannot cover things like mechanical repairs, your deductible or bodily injuries from accidents, but it does cover:
This additional coverage is very convenient when regular insurance won’t cover all these unforeseen circumstances. Unexpected things happen, and it’s better to have GAP insurance to prepare for any of those unfortunate events.
Of course! Those unexpected events aren’t so much of a burden when you have GAP insurance protection on your vehicle. Since your vehicle automatically depreciates as soon as you drive off the lot, GAP insurance will serve as the insurance that will cover the gap between the worth of your vehicle and what your own insurance will cover if an accident occurs.
You can get GAP insurance in two different ways. You can get the insurance at your dealership or through a business that explicitly handles auto coverage. If you choose to get covered, it’ll only cost you the one time fee the first time you purchase and only $20 a year!
If you’re ready to fully insure yourself and your new vehicle, speak to our finance department at Sussex Honda near Hackettstown and Denville. Our staff is standing by to answer any and all questions you may have. Explore more options to have your back on the road like comprehensive insurance coverage. You can even learn more about car repair financing, whether buying vs. leasing is right for you or financing at a bank vs. a dealership.