What is Gap Insurance?

When you purchase a new car from a dealership such as Midway Chrysler Dodge Jeep Ram, you’ll have to consider various options in terms of financing and insuring your vehicle. One of the many optional insurance coverages you can choose is gap insurance. So, what does gas insurance do? In short, gap insurance is made to cover the gap between the owed amount on the vehicle and the true cash value of the vehicle at the time of an accident. Read on as the team at Midway Chrysler Dodge Jeep Ram delves further into what gap insurance covers to make it easier for you to find out.

What Does Gap Insurance Cover?

If you’re considering gap insurance to cover your Grand Island commutes, you should remember that this form of insurance covers damage to your vehicle, and not the property or bodily injuries that occur at the time of an accident. What does gap insurance do? Here’s a breakdown of what gap insurance does and does not 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

The main answer to “What does gap insurance actually do?” is that it is designed to cover total loss in the event of an accident Hastings. While this coverage is optional, it’s worth considering speaking with your insurance company about what it can offer you. 

Do I Need Gap Insurance?

Now that you know what gap insurance covers, you’re likely wondering “Do I need gap insurance?” No, you don’t need gap insurance. However, it is highly recommended that you opt for gap insurance when buying a new vehicle and going through various insurance plans and financing options. Gap insurance is even more helpful if your Lexington-area dealership offers a plan that includes deductible coverage. Ultimately, having gap insurance will not only give you peace of mind, but it will also help you save money if you were to get into an accident. Feel free to reach out to our finance team to further discuss your insurance options. 

Find Out More Insurance Information With Midway Chrysler Dodge Jeep Ram

Whether you’re looking to upgrade to your next vehicle or you want to make sure that your current one remains on the road for years to come, you can trust the team at Midway Chrysler Dodge Jeep Ram. Our service center will keep you running smoothly, and our finance department can get you behind the wheel in no time.