Is GAP Insurance Worth It?
When you work with our friendly, helpful financing professionals, rest assured that we take time to explain all of the options available to you. One of the beneficial protection plans that we offer to valued customers is Guaranteed Asset Protection or GAP coverage. We are eager to tell you how affordable this added coverage is for your vehicle, but we know that you don’t want to add protection that you’re not sure you need. Rest assured, our product specialists are non-commissioned, so we’ll only recommend the protection plans we think will benefit you.
Understanding Negative Equity
You may have heard about other drivers being upside-down on their car loan, which means that they owe more money than the car is worth. All vehicles depreciate over time, and depreciation may be more significant in a car’s first few years on the road. This type of negative equity situation is more likely to develop if you make a small down payment when purchasing a car or when you select a longer term on your loan, but it is possible in other situations as well. Negative equity may prevent some people from trading in their car as soon as they may like, but there is more involved than this minor inconvenience.
When you have a total vehicle loss, either from an accident or theft, you are responsible for the remaining amount owed on your car loan. However, your auto insurance company will only cover the value of the vehicle at the time of the loss. Essentially, you will still owe money on a car loan that you can no longer drive. This can create significant financial stress, incredible monetary loss and perhaps even the inability to afford to buy a replacement car.
How GAP Insurance Helps
A total loss event can occur at any time, and GAP insurance provides you with financial protection in these events. It covers or waives the remaining balance owed on your car loan. More than that, you can even receive reimbursement up to $1,000 for your vehicle insurance deductible so that you have no out-of-pocket expenses related to the loss event.
Our financing team is available to help you set up an affordable car loan with optional protection plans that are well-suited for your needs. When you contact us for assistance, we can answer all of your questions about GAP insurance and the other protection plans available.
Additionally, you can choose your own coverage and payments right from our digital deal builder. Shop from our great selection of vehicles, which are all free from recalls and have a clean CarFax, and then, create your perfect deal! You control the process, and you can do as little or as much as you want from the comfort of your own home.