GAP insurance is a type of optional insurance coverage for your vehicle that can be added to your collision insurance policy. While GAP insurance is optional, it provides valuable financial security and reduces your financial risk in the early years of your auto loan. Since your vehicle’s value may be less than the amount financed during the early years of auto ownership, your finances could be put at risk in the event of an accident or theft. The good news is GAP insurance protects you from this scary situation.
In the event you find yourself facing a total vehicle loss, whether from an accident, theft, etc., you will still need have to pay off your auto loan. In some cases, your insurance company may pay off the total amount, but that’s not always the case. More often than not, there will a substantial difference between the amount your insurance pays and the current outstanding balance on your loan or lease. GAP insurance will pay this difference, which at times could be significant.
While purchasing GAP insurance does require you to pay a small premium, the amount is minimal compared to what you could owe in the event of a total loss. Our experts at Graff Mt. Pleasant can provide you with all the information you need to decide if GAP insurance is right for you.
At Graff Mt. Pleasant, we want you to be thrilled with your vehicle purchase experience for years to come. We understand that you may have questions on the specific details regarding how GAP insurance works, so please know that we are here to help anytime! For a minimal investment, GAP insurance is a great option to protect yourself from significant financial risk in the event of a total vehicle loss.
If you have any questions or concerns about GAP insurance or vehicle protection plans, please don’t hesitate to Graff Mt. Pleasant at (989) 773-3937 (Chevrolet) or (989) 773-3917 (Buick GMC Cadillac)!