What is Gap Insurance?

February 13th, 2019 by

couple at the finance departmentBuying a new car from INFINITI of Naperville means you’ll have to look over various options in terms of financing and insuring your car. Gap insurance is one of those choices. So, what does gap insurance do? Put simply: it is designed to cover the gap between the owed amount on the car and the true cash value of the car at the time of an accident. Let’s take a closer look at what this special type of insurance covers, and how it can benefit your daily drives around Plainfield.

What Does Gap Insurance Cover?

Gap insurance covers a variety of issues related to your vehicle. However, drivers near Aurora should remember that it is only meant cover vehicle damage and excludes property or bodily injuries. With that, here’s exactly what gap insurance does, and does not, cover:

  • Gap Insurance Covers:
      • Vandalism
      • Theft
      • Fire
      • Accident
      • Acts of nature (tornado, hurricane, flood, etc.)
  • Gap Insurance Does NOT Cover:
    • Engine failures and other mechanical repairs/malfunctions
    • Deductible (though some gap insurance policies allow this)
    • Extended warranties
    • Death

The most important thing to note when asking, “‘what does gap insurance do?’, is that it is meant to cover total loss if an accident unfortunately occurs. Though it is not required, it is worth talking with your insurance company about how it can benefit you.

Do I Need Gap Insurance?

In short: no. But it is highly recommended that you select gap insurance when purchasing a new car and going through the various insurance plans and financing options. Gap insurance is even more beneficial if your dealership offers a plan that includes deductible coverage. In addition to added peace of mind, gap insurance can help you save money in the unfortunate event of an accident. Speak with our financing team to talk about buying gap insurance.

Explore All Insurance and Finance Options at INFINITI of Naperville

Whether you’re ready to purchase or just beginning the car shopping process, it pays to have the knowledge about various insurance plans. Make sure you understand exactly what you need, and want, before purchasing a car. The right coverage can save you time and money down the road. Stop by today, or feel free to contact us online if you have any questions.

  • What is Gap Insurance?

    Buying a new car from INFINITI of Naperville means you’ll have to look over various options in terms of financing and insuring your car. Gap insurance is one of those choices. So, what does gap insurance do? Put simply: it is designed to cover the gap between the owed amount on the car and the true cash…

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Posted in Finance, Tips