What is Gap Insurance?
When you buy a new car or lease a new car in the Clovis area, it’s an exciting time. You can enjoy that new-car smell and the feeling of knowing you’re the first person to ever drive your car, truck, or SUV. This is also the time when you’ll want to decide about any coverage to keep your new ride safe. Gap insurance covers the gap between the true cash value of the car and the amount owed on it at the time of an accident — and it’s included in all new Acura lease contracts.
What Does Gap Insurance Cover?
Gap insurance covers issues related to your vehicle, such as vehicle damage, but it does not cover property or bodily injuries. This is exactly what gap insurance does, and does not, cover for Madera drivers:
- Gap Insurance Covers:
- Acts of nature (tornado, hurricane, flood, etc.)
- Gap Insurance Does NOT Cover:
- Engine failures and other mechanical repairs/malfunctions
- Deductible (though some gap insurance policies allow this)
- Extended warranties
Other Gap Insurance FAQs
What Does Gap Insurance Do?
Gap insurance is meant to cover total loss in the event of an accident. It is an optional coverage, but it’s worth considering as an add-on to protect your new Acura.
Do I Need Gap Insurance?
It is highly recommended when you buy a new car. Many dealerships offer a gap insurance plan that includes deductible coverage, so it’s a good idea to ask about it during the car-buying process.
Moreover, if your down payment was less than 20% of the total cost of the new Acura you purchased, you may owe more than your car is worth should there be an incident with it. If your car is totaled, damaged, or stolen, gap insurance can help you pay off the balance of the loan — especially if your initial downpayment was on the low end.
Explore All Insurance and Finance Options at Fresno Acura
To learn more about gap insurance, contact us online or visit us in person in Fresno. Our finance team members will be happy to go over the details of gap insurance, traditional car insurance, and Acura financial services options. You can even apply for financing online.