The Benefits of Gap Coverage After Purchasing a New Car

September 10th, 2018

GAP Insurance Coverage The second you drive a car off a dealership lot, it decreases in value by more than 10 percent. It continues to go down in value over the course of the next year, and after 12 months, it’ll be about 20 percent less valuable than it was when you first bought or leased it. Yet, if you financed or leased the car, you’ll likely still owe a lot more than what it’s worth. That’s where GAP, or guaranteed asset protection, insurance can help. Here are 3 big benefits of GAP insurance coverage.

GAP insurance covers the big gap between what a car is worth and what you still owe on it.

When you first purchase or lease a car, there is almost always going to be a big gap between what the car is worth and what you owe on it. That gap can really come back to bite you if you’re ever involved in an accident that leaves your car totaled. Your insurance company is only going to pay what the car was worth at the time of the accident, not what you owed on it. That means you could be on the hook for several thousand dollars if you don’t have GAP insurance. GAP insurance will fill in that gap and prevent you from having to pay a fortune to replace your car.

It doesn’t cost much to purchase GAP insurance.

Many people decline GAP insurance coverage without realizing the affordability of the coverage. You can usually purchase GAP insurance coverage for less than $1,000 over the life of your car. You might even be able to find some GAP insurance coverage for just a couple hundred dollars. That small investment could pay off in a big way if you’re ever in a bad accident.

It’ll give you one less thing to worry about if your car is ever totaled.

If your car is totaled during an accident, you’re going to have so many things to worry about. From injuries to medical bills, there will be so much on your mind. Why worry about the gap between what you owe on your car and what your insurance company says it’s worth, too? GAP insurance coverage will give you a peace of mind you wouldn’t be able to enjoy otherwise.

When you purchase a car from George Kell Motors, we can tell you all about GAP insurance coverage and how it could save you. Call us at 870-495-2620 to see how easy it is to get GAP coverage with any new, used, or leased Buick, Chevrolet, or GMC vehicle.

 

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