When you’re buying a certified pre-owned or used vehicle in Defiance, you’ll come across various insurance choices. One term you might hear is “gap insurance.” But how much is gap insurance, and what does it cover? In this guide, Exceptional Motorcar’s finance team will explore gap insurance, explaining its basics, what it covers, why you might need it, how to get it, and the average cost of gap insurance.
Before we dive into how much is gap insurance, let’s clarify what gap insurance is and its significance. Gap insurance bridges the gap between your vehicle’s current value and your remaining loan balance. It differs from comprehensive insurance, which primarily covers non-accident-related damages. Gap insurance, also called Guaranteed Asset Protection (GAP) insurance, safeguards your financial interests in the event of an unexpected total loss by closing the financial disparity between your car’s financed amount and its actual cash value (ACV).
However, it’s important to remember that gap insurance doesn’t protect against bodily injuries or property damage like liability Insurance. It primarily comes into play when there’s a total loss.
The average cost of gap insurance can vary depending on where you purchase it in Lima. Here’s an overview of your options:
The yearly gap insurance costs are relatively low, making it easy to fit into your budget. Whether you opt for a $20 annual payment or a single flat fee, you can drive through Toledo with peace of mind. Here are a few compelling reasons why adding this extra coverage is a smart choice, whether you have a new or used car:
Now that you understand gap insurance costs, discover other ways to protect your vehicle affordably with Exceptional Motorcar! Have questions about gap insurance prices? Contact us for assistance. Explore our other car-buying tips for advice on buying vs. leasing, trading in a financed car, and more.
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