What is Gap Insurance?

Tiny car with insurance documents

 

When it comes time to purchasing a new car from Lee Motor Company, you’ve got a number of things to consider, such as financing and insurance. One of the many optional insurance coverages you can select from is gap insurance. But what is gap insurance? And how does gap insurance work? In short, gap insurance is made to cover the gap between the owed amount on the vehicle and the true cash value of the vehicle at the time of an accident. Read on as we delve further into what does gap insurance cover. Then, be sure to browse more of our car buying tips to get the ins and outs of the automotive shopping experience or contact us with any questions that you still have.

What Does Gap Insurance Cover?

If you’re considering gap insurance to cover your Evergreen ride, you should remember that this form of insurance covers damage to your vehicle, and not the property or bodily injuries that occur at the time of an accident. How does gap insurance work? Here’s a breakdown of what gap insurance does and does not cover:

Gap Insurance Covers:

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

Gap Insurance Does NOT Cover:

  • Deductible (though some gap insurance policies allow this)
  • Engine failures and other mechanical repairs/malfunctions
  • Death
  • Extended warranties

The main answer to the question “How does gap insurance work?’ is that it is designed to cover total loss in the event of an accident in Brewton. While this coverage is optional, it’s worth considering speaking with your insurance company about what it can offer you. 

Do I Need Gap Insurance?

Now that you know what does gap insurance cover, you’re likely wondering “Do I need gap insurance?” No, you don’t need gap insurance. However, it is highly recommended that you opt for gap insurance when buying a new vehicle and going through various insurance plans and financing options. Gap insurance is even more helpful if your Atmore area dealership offers a plan that includes deductible coverage. Ultimately, having gap insurance will not only give you peace of mind, but it will also help you save money if you were to get into an accident. Feel free to reach out to our finance team to further discuss your insurance options. 

Learn More with Lee Motor Company Today

Now that you know more about what does gap insurance cover, the next step is making sure that the vehicle that you’re looking for is in your hands in no time at all. And for that, our finance department is here to make it easier than ever to upgrade your ride.

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