What is Gap Insurance?

Wondering what is gap insurance on a car? Gap Insurance, otherwise known as Guaranteed Asset Protection Insurance, covers the difference between your car’s value and the balance still owed on it at the time of trading in regardless of whether it’s a loan or lease. If you’d like to learn more about insurance coverage, contact the Acura Turnersville Finance Department! We’ll walk you through all things Acura finance.

What Else Does Gap Insurance Cover?

What is gap protection? Aside from covering the difference between your car’s value and what you still owe toward it, gap insurance covers a variety of other key areas. It does not cover bodily injuries, mechanical repairs, or your deductible, but it does cover the following:

• Theft
• Fire
• Vandalism
• Accidents
• Natural damages from tornadoes, hurricanes, floods, etc.

If your regular insurance doesn’t cover all of the above, then it’s a good idea to have gap insurance. You never know when an inconvenience will come up, so you’ll be better prepared.

Is Gap Insurance Worth It?

Having gap insurance protects your investment when something unexpected occurs, which is why it’s certainly worth it if you’d like something to fall back on. There’s no way of predicting things like car theft or natural disasters, which is when gap insurance comes in handy. And because your vehicle begins to depreciate as soon as you buy it, gap insurance will cover the gap between your vehicle’s worth and what your insurance will cover for accidents.

How Do I Get Gap Insurance?

If you decide on getting gap insurance, you can purchase it through your auto insurer (whether that’s through your dealership or an outside business). Generally, coverage costs as little as $20 a year plus a one-time fee at the time of your purchase.

Learn More at Acura Turnersville

Ready to insure your new Acura? Contact our Acura finance department at your convenience! You’ll feel even more secure driving through the Cherry Hill and Maple Shade streets knowing that your vehicle is more comprehensively covered. In the meantime, feel free to reach out with any questions you may have about Acura leasing, lending, or refinancing.