What Does Gap Insurance Cover?

If you’re getting ready to purchase a new vehicle, there’s a good chance you’d like to know as much as possible about all of the financing and insurance packages you’ll encounter while signing the paperwork. For many drivers in the St. Charles area, GAP coverage is one of the most mysterious options. This means that, if you’re wondering, “What does GAP insurance do?” you’re certainly not alone. In the simplest terms, GAP insurance covers the difference between the amount on your loan and the true value of your vehicle.

What Does Gap Insurance Cover?

So, now you know the basics. Still, if you’ve never explored your options in-depth before, you probably still have quite a few questions about the kind of protection offered by these plans. Here, we’ve offered a more detailed answer to the question, “What does GAP insurance cover?”

If you’re dealing with any of the following, you can trust that GAP insurance will cover the difference between your remaining loan balance and your vehicle’s true value:

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

GAP insurance does not apply in the event of engine failure, mechanical malfunctions, owner death, or in cases where extended warranty coverage conflicts.

Do I Need Gap Insurance?

The main purpose of GAP insurance is to ensure that you can pay off the remaining loan balance in the event that you total your new vehicle. So, the insurance package is helpful for any driver who would rather not end up “under water” when they decide to finance a car, truck, or SUV near Fenton or Chesterfield.

GAP coverage is not required by law, but we think it’s a smart option for drivers from all walks of life. Remember, your vehicle will start to depreciate in value the moment you drive it off the lot. This means that, unless you have GAP insurance, a crash within the first few years of ownership could leave you with significant debts, and in need of a new loan, too!

Get More Finance and Insurance Tips from Suntrup Automotive Group!

We know that purchasing a new vehicle can be a very exciting time! However, it’s important to consider all of your options carefully. Contact us today to speak with an expert on our financing team. We’ll help you get a better understanding of liability insurance, whether you need full coverage on a financed used car and can even help you figure out how much car you can afford on your budget. If you haven’t yet found your next vehicle for sale near St. Louis, make sure to check out our new vehicle specials today! When you save big, it’s easier to make smart choices.