What Does GAP Insurance Cover?

Tiny car with coins and finance paperwork

 

What does GAP insurance cover? You may or may not have heard of GAP insurance. However, it is crucial to understand what GAP insurance costs if you want to add it to your current insurance coverage or are asked to include it as a part of your insurance. At Suntrup Hyundai South, we discuss GAP coverage and answer, “What does GAP insurance do?”

Read on to learn more and contact us if you have any questions.

What is GAP Insurance?

GAP stands for “Guaranteed Asset Protection,” and GAP insurance covers the discrepancy of monies owed on a vehicle and its value. If you financed your car, there is a period of time where you’ll likely owe more than what the vehicle is worth. If you get in an accident that totals your car, your insurance payout will only cover the value of the car, not what you owe. 

This means you might be stuck paying the difference between your value and loan amount. GAP insurance covers that “gap” in coverage to ensure you’re not left in a lurch should your vehicle be totaled. You can get more information from speaking to one of our finance team members who are happy to help St Charles drivers with any car insurance questions.

What Else Does GAP Insurance Cover?

Besides the difference between model value and what is owed on a vehicle, what does GAP insurance do? Here is what else GAP car insurance covers:

  • Theft
  • Fire
  • Vandalism
  • Accidents
  • Nature damages (tornado, hurricane, flood, etc.)

Some Jefferson County drivers may be unaware that GAP insurance covers much of what traditional car insurance does not. Therefore, additional coverage can help when you need it to cover other expenses, especially on a new vehicle.

Is GAP Insurance Worth It?

Additional protection for your vehicle is not always ideal. However, when it comes to GAP insurance, is it worth it? Yes, it sure is! Unfortunately, the unthinkable can happen, and when and if it does, you do not want to be stranded paying hefty amounts out of pocket. Therefore, GAP insurance covers you in various automotive disasters.

How Can I Get GAP Insurance?

You can obtain GAP insurance through your auto insurance company. You pay as little as $20 annually in addition to a one-time fee at the time of purchase. The one-time and yearly cost is worth it in an accident, especially when other insurances do not cover the same expenses.

Learn More at Suntrup Hyundai South in St. Louis!

If you are in the market for a new vehicle, our finance department can aid in helping you buy or lease your next vehicle or apply for financing online. They can also explain GAP insurance and any other auto insurance you may be interested in knowing more about. Visit our dealership near St Louis in St. Louis and let’s connect today!

 

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