What is Gap Insurance?

Finance Documents for Car

When you buy a new car from Auffenberg Dealer Group, you’ll have to look over a variety of options regarding financing and insuring your car. Gap insurance is one of the many insurance coverages you can opt for. So, what exactly is gap insurance? It is insurance that is meant to cover the gap between how much you owe on a vehicle and its true cash value at the time of an accident. Find out what gap insurance covers and how it can benefit you on Collinsville area roads.

What Does Gap Insurance Cover?

Gap insurance covers a variety of things, but O’Fallon and Caseyville area drivers should keep in mind that it is meant to cover damage to your vehicle, and not property or bodily injuries. Take a look at what gap insurance does and doesn’t cover:

  • 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
Car Collision Accident

The basic answer to the question “what does gap insurance do?”, is that it is meant to cover a total loss in the event of an accident. Unlike liability insurance, it is an optional coverage, and you should consider talking to your insurance agent about what gap insurance can offer you.

Do I Need Gap Insurance?

Gap insurance is not required, but it is highly recommended that you opt for it when purchasing a new car. It is particularly helpful if the dealership is offering a warranty coverage that includes a deductible. Having gap insurance can add some peace of mind, while helping you to save money in the event of an accident. Our finance specialist will be happy to discuss your options regarding gap insurance. We also have information that may assist you if you are entitled to a gap insurance refund.

Explore All Insurance and Finance Options at Auffenberg Dealer Group

When you’re shopping for a car, truck, or SUV, it’s important to know what your insurance options are. Understanding what you need and what you want will make the process a whole lot smoother, and choosing the right coverage can save you money. Find out what to bring when buying a car, learn about guaranteed car financing, and explore the differences between buying vs. leasing, then contact us to schedule a test drive at the Auffenberg Dealer Group dealership near you.

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