Along with securing a good interest rate on a car loan, choosing your insurance coverage is an important part of buying a new Honda car, truck, or SUV. Looking at the variety of insurance options available in the Irvine area, you may be wondering: “What is GAP insurance, and what does GAP insurance cover?” Unlike liability insurance which is mandatory, Guaranteed Asset Protection, or GAP, is an optional insurance plan that covers the difference between the value of a vehicle and the balance still owed on it. Find out more about what GAP insurance covers and how it works in this guide from the finance specialists at Weir Canyon Honda.
GAP insurance helps to pay the difference between your vehicle’s value and the amount you owe on it, in the event of an accident. This can be especially beneficial to many Yorba Linda drivers, adding peace of mind and potentially saving you a lot of money if your vehicle has been totaled in a crash. Note that GAP insurance does not cover bodily injuries, mechanical repairs, or your deductible. So, what does GAP insurance do? It provides coverage for damages to your vehicle from:
The majority of auto insurance policies do not cover these kinds of unexpected occurrences, which can make choosing GAP insurance a smart move for car owners in and around Tustin.
Having coverage that helps to protect your investment if something out of the ordinary happens to your vehicle is definitely worth it. Since the value of your vehicle begins to depreciate the moment you drive off the lot, having GAP insurance cover the difference between how much your car is worth and how much you are still paying on it can save you money in the event of a collision.
You can purchase GAP insurance from your local Anaheim dealership or from a reputable insurance company. Typically, GAP insurance costs as little as $20 a year, in addition to a one-time fee at the time of purchase.
Our finance team is happy to explain your insurance options, as well as provide car buying advice on things like whether buying or leasing a vehicle will work best with your budget. Whether you are looking for a competitive auto loan rate or want to know how to lease a car when you have a bad credit score, we’re here to help. Feel free to contact us with any questions you may have.
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