Are you upside down on your car or considering purchasing a new one. If so, you should consider gap insurance. Our specialized team at Alexander Insurance is here to help you make smart decisions when it comes to protecting your vehicle. We never want to see our clients get into a situation where they have to owe potentially a lot of money simply because they didn’t have the right coverage. We will walk you through the benefits of gap insurance below and help you determine if it is the right choice for you.
What is Gap Insurance?
Did you know as soon as you drive a new vehicle off the lot, its value instantly depreciates? Sadly, this can put you in a sticky situation if you don’t have the right coverage. Let’s say you purchase a new vehicle or are already driving one that is worth less than what you owe and happen to get in an accident. Gap insurance or Guaranteed Auto Protection is going to be the coverage that saves you from having to pay that difference in your vehicle’s cash value versus what you owe on the loan. You can see why this would be a smart option to consider.
When should you consider Gap Insurance?
There are a couple of scenarios where gap insurance would be a good idea. If you have questions regarding gap insurance or your current insurance policy, call our office in St. Charles and let our team of experts assist you. Here are some examples of when you would need this type of coverage.
- If you lease a car
- If you did not put 20% down when purchasing your car
- If you rolled over negative equity
- If your loan term is longer than 60 months
- If you have a vehicle that depreciates faster than average
What Does Gap Insurance Cover?
Gap coverage will cover the gap between what you owe and what the car is worth if your vehicle gets totaled or stolen. No matter what happens to your car, gap coverage will take over as long as it is deemed a total loss. For example, theft, collision, or a total loss in a natural disaster situation would all qualify.
Gap Insurance does not cover the following:
- Extended warranties
- Vehicle repairs
- Rental cars
Gap Coverage at Alexander Insurance
Your car dealer may offer you gap Insurance when purchasing a vehicle. However, you will find much more affordable rates by going through a reputable insurance group. Our team has years of experience helping customers in St. Charles and St. Louis find the right coverage for their needs, including gap insurance. Give us a call today! (636)949-9525