Is Gap Insurance Worth It?

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When you purchase a new Honda from Honda Universe, you may be wondering what your insurance coverage options are. Getting comprehensive insurance coverage will cover any damage to your vehicle outside of an accident, but what is gap protection? Gap insurance covers the “gap” between your vehicle’s current worth and what you still owe on it, but many Lakewood drivers find themselves asking if gap insurance is worth it.

Because of the potential savings and the low overall cost of gap insurance, many car-buyers and insurers recommend purchasing gap insurance. Learn more about what gap insurance protection is and if it’s worth the extra cost for your budget. You can also contact the Honda Universe finance center if you have any questions.

What is Gap Insurance On A Car & What Does It Cover?

Gap insurance – also called Guaranteed Asset Protection – is insurance coverage that covers the difference (or the gap) between the cash value of your vehicle and the amount you still owe on it. This applies to vehicles who have a lease or loan.

Whether your vehicle is damaged through an environmental disaster or an accident in Freehold, gap insurance will cover the cost between what your insurance will pay and the current cash value of your vehicle. Gap insurance doesn’t cover bodily injury or property damage, however. Read below to see what gap insurance will cover in the event of a total loss:

Gap Insurance Covers:

  • Theft
  • Fire
  • Vandalism
  • Accident
  • Acts of nature (tornado, hurricane, flood, etc.)

Want to know what else gap insurance covers and doesn’t cover? Learn more when you read our comprehensive blog on gap insurance.

Do I Need Gap Insurance?

While gap insurance is optional insurance coverage, it’s recommended that you purchase gap insurance to protect your assets and your budget. Here are some reasons why many drivers believe gap insurance is worth it:

  • Vehicle depreciation happens the moment you drive off the dealership lot.
  • Accidents are unpredictable and can happen at any time. It could be months after you buy your car or the day after.
  • Most insurance companies only cover what your vehicle is worth at the time of the accident.
  • If your new vehicle is totaled or stolen and you owe more than its current worth, gap insurance will cover that difference.
  • Gap insurance is a relatively low-cost insurance coverage plan and it’s easy to obtain from your local Toms River insurers.

How Do I Buy Gap Insurance?

There are several ways to get gap insurance coverage in Jackson.

  • Lakewood auto insurance companies may offer gap insurance for as little as $20 per year.
  • Some dealerships or car-loan companies may offer gap insurance or other vehicle insurance coverage.
  • Specialized car insurance companies will offer gap insurance for a one-time fee.

Learn More About Car Insurance & Read Car Buying Tips

When you’re ready to purchase your next vehicle, browse the Honda Universe new vehicle inventory to find the perfect car for your needs. Then, read our car buying tips to learn more about the car buying process, to see if you already have gap insurance, and used car in-house financing!

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1085 Ocean Ave (Route 88), Lakewood, NJ, 08701
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