What is Gap insurance on a Car?

car insurance
When you purchase a new vehicle from Hyundai of Asheville, you need to purchase insurance before you can drive around Weaverville. However, aside from liability insurance coverage, you may be wondering what your other insurance options are. Unlike liability insurance, Gap insurance is optional coverage drivers can purchase to help protect their finances in the event of an accident. Essentially, Gap insurance will cover the “gap” between what you owe on your vehicle and how much it’s worth at the time of an accident where your vehicle is considered a total loss. Learn more about what Gap insurance is and if Gap insurance is worth the additional cost with Hyundai of Asheville below!

What is Gap Protection?

Gap insurance – also known as Guaranteed Asset Protection – is an optional insurance coverage plan that covers the difference (the “gap”) between the cash value of your vehicle and the amount you still owe on it at the time of an accident. This applies to vehicles that are leased or financed.

Whether your vehicle is damaged during an accident or from an environmental disaster in Hendersonville, Gap insurance will cover the cost if your insurance company considers it a total loss. Gap insurance doesn’t cover bodily injury or other property damage, however. Read below to see what Gap protection covers:

Gap insurance Covers:

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

Is Gap Insurance Required?

Unlike liability insurance, Gap insurance is not a required auto insurance coverage plan. However, if you’re looking to purchase a new vehicle, the low-cost and added benefits that come with a Gap insurance coverage makes it highly recommended by insurers and Black Mountain dealerships. Read below to see why Gap insurance is worth the extra cost:

  • 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 Hendersonville insurers.

How Do I Buy Gap insurance?

If you’ve decided that Gap insurance is worth your investment, there are several ways you can acquire it in Asheville. If you have any questions about Gap insurance coverage, you can also contact our finance team.

  • Asheville 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 Gap insurance for Your Car

Now that you know more about Gap insurance coverage and how it can help protect your new Hyundai purchase, read the other car buying tips available from Hyundai of Asheville to learn more about how car financing works and what to do after a car accident. You can also contact our team if you have any specific questions on Gap insurance coverage. Get in touch today, we look forward to hearing from you!

 

 

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