GAP insurance covers the value you still owe on a new vehicle once you finance a new car. Before you drive off the dealership lot, you’ll want to make sure you get thorough coverage with GAP insurance coverage. Is GAP protection worth it? Find out at Land Rover Freeport whether this coverage makes sense for your car and your needs, and contact our finance center if you have any questions!
What is GAP Insurance?
GAP insurance covers the difference between the cash value your car is worth and the amount that you still owe on the vehicle, whether you have an auto loan or lease. While it sounds like it’s called GAP insurance because it takes care of a “gap” in coverage, GAP actually stands for Guaranteed Asset Protection.
Do I Need GAP Insurance?
Is GAP protection worth it? If you are purchasing a new or certified pre-owned vehicle, most would agree that GAP insurance is indeed worth it. Below are some reasons why purchasing GAP insurance might be a good idea for you:
Depreciation happens the moment you drive of the dealership lot.
Accidents can happen at any time, including right after you drive a new vehicle off the lot.
Most insurance companies only cover what your vehicle is worth at the time of the accident.
If your new car is totaled or stolen (called a total loss) and you owe more on it than its current deemed value, GAP coverage accounts for that difference.
The cost of gap insurance is relatively low, and it is easy to obtain, so there is really no reason NOT to have it.
How Do I Buy GAP Insurance?
When it comes to purchasing GAP protection insurance in the Massapequa area, you have a couple of different options:
Many auto insurance companies may offer for fairly low rates around $20 per year, or it may already be included in your policy.
Your local authorized car dealership or car loan company may offer it for a one-time fee.
There are specialized GAP insurance companies that sell it for a one-time fee.
Rely on Land Rover Freeport for Your Finance & Insurance Needs
Before you head to your Freeport Land Rover dealership, use resources at Land Rover Freeport like our payment calculator to estimate your monthly payments. You can also check our list of rotating special offers to get a great deal on your next vehicle purchase!