What is Gap Insurance?

February 14th, 2019 by

Car insurance

When you purchase a new car from INFINITI of Boerne, that means you will have the opportunity to look over various choices in terms of financing and insuring your vehicle. One of the most common optional insurance coverage plans is gap insurance. So, what exactly does gap insurance do? It was designed to cover the gap between the amount owed on the car and the true cash value of it at the time of an accident. We’ll go over what exactly this type of auto insurance covers, and how it can benefit your San Antonio-area drives.

What Does Gap Insurance Cover?

Gap insurance covers multiple issues that relate to your car. One thing New Braunfels drivers should consider, however, is that it’s meant to cover the damage to your car, and not property or bodily injuries. Here is what gap insurance does, and does not, cover:

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

Gap insurance is meant to cover the total loss in the event of an accident. Gap insurance is an optional coverage, but it’s worth talking about with your insurance company.

Do I Need Gap Insurance?

The short answer is no. Though, when you’re buying a new car and browsing the financing options and insurance plans, you should consider getting gap insurance. This optional insurance is extremely helpful if your dealership offers a plan that includes deductible coverage. Gap insurance gives you peace of mind and helps save money in the unfortunate event that an accident occurs. Speak with our financing team to learn more about purchasing gap insurance.

Explore Your Insurance and Finance Options at INFINITI of Boerne

Whether you’re looking to purchase a new SUV or crossover or have just started the search, it helps to have the knowledge about various insurance plans available. Make sure you know what’s needed, and what you want, before buying a car. The right coverage not only saves you time down the road, but you will also save money. Visit us today in Boerne, or contact us online and we’ll be happy to answer any questions you have whether it’s about insurance, bad credit car loans, or replacing the battery in your key fob.

 

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