Is GAP Insurance Worth It?

Man and Woman Signing Contract
 

After you’ve purchased a new or pre-owned vehicle from our inventory, one of the first steps you should take to ensure you’re protected is to opt for automotive insurance. When you opt for comprehensive automotive insurance, your vehicle is typically protected from damages in the event that you get into an accident on the Holmdel roads.

 

 

But, if comprehensive auto insurance covers damage to your vehicle, what is GAP insurance on a car? GAP insurance adds an extra layer of protection and is meant to supplement your vehicle’s auto insurance. Learn all about GAP insurance today with the finance team at Ray Catena Lexus of Freehold and find out if it’s worth it for you to add to your vehicle!

What Is GAP Protection?

So, what is GAP protection? GAP insurance stands for Guaranteed Asset Protection and it covers the cost between your vehicle’s cash value and the amount of money you still owe left on a loan. GAP insurance is vital for those who have negative equity on their vehicle loan as you won’t be responsible for the GAP between your vehicle’s worth and the auto loan amount if anything were to happen.

As a reminder though, GAP insurance is supplemental insurance and is not a replacement for your regular auto insurance. We typically recommend most drivers have both GAP and regular auto insurance before they start driving around Colts Neck. Now that we’ve answered the question, “What is GAP insurance on a car?” are you curious about when GAP insurance might cover you? Take a look below at some instances where GAP insurance may be helpful:

  • Accident
  • Theft
  • Floods
  • Hurricane
  • Fire
  • Vandalism
  • And more

Of course, GAP insurance and vehicle insurance coverages can vary depending on your specific provider so we recommend you confirm the details when you opt for either one.

Things To Consider With GAP Insurance

Although we’ve gone over, “What is GAP protection?” you may still be on the fence about opting for it. Truthfully, we think that GAP insurance is almost vital if you’re looking for extra peace of mind during your Old Bridge adventures, and here’s why:

  • Cost: The cost of GAP insurance is relatively low when you consider the level of coverage that it offers.
  • Accidents: It’s already stressful if you get into an accident and the last thing you want to worry about is paying off the loan on a vehicle you can’t even drive. GAP insurance eliminates that worry.
  • Depreciation: Depreciation is almost unavoidable with nearly any vehicle and GAP insurance offers some protection against that.

We Can Help You Get GAP Insurance at Ray Catena Lexus of Freehold!

If you’re ready to protect yourself with GAP insurance, you can stop by our Freehold dealership and we’ll be more than happy to assist. Otherwise, if you’re still wondering, “What is GAP insurance on a car?” feel free to get in touch with us online for more information!

 

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