What Is Gap Insurance?
Guaranteed asset protection insurance, or Gap insurance, is different from your regular insurance plan. This optional plan serves to help you cover a loan or leasing contract that you took out in the event of something unfortunate happening to the car.
So, even if your new vehicle becomes unusable, the insurance will have the rest of your payment plan covered, so you can move on easily to another vehicle.
This plan is different from collision coverage. Because as soon as you drive off the lot, your new car depreciates in value; this insurance plan covers that “gap” of depreciation, filling in between the loan value and regular insurance payout.
Is Gap Insurance Worth It?
Gap insurance can be worthwhile for drivers who:
- Have purchased or leased a new vehicle.
- Paid a low downpayment on their loan or lease.
- Want coverage in case of the vehicle being totaled, stolen, etc.
Since this insurance only covers the value of new vehicles, it only works in conjunction with models fresh off the lot. If your payment plan had a low downpayment, then it’s possible the value of the loan may not quite meet the value covered by regular insurance.
This plan is a great way to have total security when you drive around town. Even if you’re a very careful driver, there’s no accounting for every possible outcome, and an insurance plan can help in the case of a total loss, accident, and more for drives in your state.
Where Can I Get Questions Answered?
If you want to learn more about the benefits of Gap insurance in Colorado, then you can get in touch with our team.
Our sales staff will help you find a capable new car that you can take out confidently to Angelo’s Taverna and home again. Whether you’re interested in a sedan, SUV, electric vehicle, or beyond, our team can assist.
Then, our finance team will help you get the right lease or financing plan that fits your budget.
From there, we can help answer any questions you might have about seeking out extra insurance, so you can decide if you want to invest in some extra protection.