Taking out gap insurance on a new vehicle is a smart way to protect yourself financially in the event of a collision. There’s often a gap between the value of your vehicle and the amount you owe on it, and it’s that ‘gap’ that’s covered by gap insurance. For example, if the vehicle you took out a $20,000 loan on is valued at $15,000 at the time of the accident, you’d be out $5,000 after the insurance agency steps in. With gap insurance, that $5,000 is covered.
Okay, but you might be asking yourself, “how do I know if I have gap insurance?” The answer isn’t always obvious, so we’ve put together a quick guide for Freehold drivers.
Gap insurance isn’t state-required coverage, so Toms River drivers can choose whether or not they want to take it out. That means you’ll usually know if you have gap insurance simply because you remember taking it out at the time of purchase.
However, you might not know you have gap insurance if you leased your current vehicle instead of financing it. When you lease a vehicle, the agreement may have required you to take out gap insurance to protect against a total loss, so it can be something drivers forget to note.
Whether you’re financing or leasing, gap insurance isn’t necessarily something you need to take out, but some loan and leasing companies will include a GAP Waiver Provision in their agreements. If you’re still unsure if you have gap insurance, the best thing to do is check with your lender or leasing company. They’ll be able to let you know if a GAP Waiver Provision is part of your agreement.
There are a few ways for Jackson drivers to take out gap insurance. You can purchase from:
It’s harder to take out gap insurance after you finance or lease a vehicle, but it can still be possible.
If you’re still asking ‘do I have gap insurance?’, feel free to contact one of the team here at Honda Universe in Lakewood. We’re always happy to help you navigate everything from common financing queries to current special offers.