What is GAP Insurance?

Purchasing a new vehicle is exciting. You get to drive around South Phoenix in a fresh new ride packed with all of the latest technology. With that being said, accidents can happen and you’ll want to do everything you can to protect yourself. One of the ways you can protect yourself is with GAP insurance. But, what is it?

GAP insurance stands for Guaranteed Asset Protection and it provides you with additional coverage in addition to regular car insurance. With that being said, what is the benefit of GAP insurance? Today, the finance experts at Bill Luke Chrysler Jeep Dodge Ram will help you find that out. We’re going to go over the benefits of GAP insurance and help you decide when it makes sense to add GAP insurance to your vehicle purchase!

What Is the Benefit of GAP Insurance?

You know what GAP insurance does, but what is the benefit of GAP insurance exactly? Before you take on the Glendale streets in a new vehicle, here are some benefits of GAP insurance that you should be aware of:

• Added protection in the event that your vehicle gets totaled in an accident.
• The price of GAP insurance isn’t very expensive.
• You’ll enjoy extra peace of mind with the coverage from GAP insurance.

When Does GAP Insurance Make Sense?

Personally, we believe that GAP insurance is a fantastic option for many vehicle owners like you. However, we know that you may still have some reservations about adding GAP insurance coverage. The main idea of GAP insurance is that many vehicles depreciate after leaving the showroom and because of this, you may end up owing money on an auto loan on a vehicle that has been totaled in an accident.

GAP insurance protects you from that depreciation and helps you better prepare in case anything ever does happen. To help you better decide if GAP insurance is a good fit for your Laveen lifestyle, let’s take a look at when adding GAP insurance protection makes sense:

• Your new auto loan has negative equity that was “rolled over” from an older auto loan.
• Most leasing contracts require GAP insurance.
• The vehicle you’re choosing has a high depreciation rate.
• Your automotive loan has a financing term of 60 months or longer.
• You put down a small downpayment.

Discover the Benefits of GAP Insurance With Bill Luke Chrysler Jeep Dodge Ram!

At the end of the day, do what’s best for your needs. However, we think that the benefits of GAP insurance are undeniable. Just remember that GAP insurance is not a replacement for regular automotive insurance and you should have auto insurance if you plan on driving around Phoenix. If you still have questions regarding GAP insurance, you can always contact our team online for assistance!