Is Gap Insurance Worth It?

When you purchase a new car from Kent County Motors, the finance team may ask if you want gap insurance. Typically, they get several questions, like “What is gap insurance?’ and “Is gap insurance worth it?” Kent County Motors is always happy to answer Dover driver’s questions. Let’s start with, “What does gap insurance cover? Gap insurance financially covers the “gap” between what your vehicle is worth and your loan balance. Learn more about gap insurance here, and contact us with your questions.

What Is Gap Insurance? 

Gap insurance is “Guaranteed Asset Protection.” It is a type of insurance that covers the gap between the current value of your car and the remaining amount of your auto loan. What does gap insurance cover specifically? Whether it’s damage from an environmental disaster or you’re in an accident in Milford, gap insurance covers the cost between what your insurance company is willing to pay and your loan balance. When does gap insurance not pay? Gap insurance doesn’t cover bodily injury or property damage — just the car’s value. This is what gap insurance covers:

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

You can always contact our finance specialists for more information or details on gap insurance.

Do I Need Gap Insurance?

Gap insurance is optional, but we at Kent County Motors recommend purchasing it if you have an auto loan because it protects your assets. Here are some examples of why many people in the 

Smyrna area chooses gap insurance:

• If your new Buick Encore is stolen or totaled and you owe more than it’s worth, gap insurance will cover the difference.
• Most auto insurance companies will only cover what your vehicle is worth when an accident happens.
• Vehicle depreciation begins when you drive off the dealership’s lot in your new car.
• Gap insurance is affordable and readily available from most auto insurance companies in Middletown. 
• Accidents can happen at any time and anywhere. 

Where to Buy Gap Insurance?

There are several places to get gap insurance, including the following: 

• Most auto insurance companies offer it.
• Some auto dealerships or other auto-loan companies provide gap insurance.
• Specialized auto insurance companies offer gap insurance for a one-time lump sum plus a one-time fee.

Learn More About Gap Insurance at Kent County Motors

Now that we’ve answered several questions about gap insurance, like “When does gap insurance not pay?” please browse our new vehicle inventory when you’re ready to move forward and finance your next car. Our team is pleased to help you choose the right one for your lifestyle and budget. You may get pre-approved for a loan online and request your trade-in value from your home, so don’t wait!