Is Gap Insurance Worth It?
“I don’t need gap insurance coverage. I have both comprehensive and collision insurance. I’m covered.”
Maybe you’re thinking the same thing. But, what if you have an accident on a nearby Georgetown road, and your car is totalled? Does the “full coverage” from your policies cover you completely? You may think it does. What if your car is worth less at the time of the accident than what you still owe on it? Are you still completely covered? What if you lease? Do you need it then? Mercedes-Benz Brampton wants to arm you with the information you need to make the best decision possible. Below, you’ll learn exactly what is gap protection insurance on a car, and if gap insurance is worth it to you.
What is Gap Insurance on a Car?
To understand what gap protection is, one needs to understand what “full coverage” does and does not do. “Full coverage” insurance (a combination of collision and comprehensive coverage) covers the full market value of your car at the time of an accident. That’s fine if the market value of your car is more than what you owe. But, what if it’s less than what you still owe? That creates a “gap” between what your full coverage policy will pay out and the balance of your loan. And you’ll have to pay that gap, unless you have a policy that’ll cover it. That’s what gap insurance on a car is. You can probably see now why so many Orangeville drivers feel that gap insurance is worth it.
Is Gap Insurance Worth It to You?
Gap insurance is something you’ll seriously want to consider if you’re buying a new car. Our finance department can help you figure out if it’s right for you. You should especially consider gap protection under these circumstances:
- Your vehicle is under lease
- Your current loan includes the leftover balance of an older auto loan
- Your loan is long-term (5 years or longer)
- You made no down payment, or a small down payment
Ask Us if Gap Insurance is Right for You!
The helpful finance managers at Mercedes-Benz Brampton would be happy to help you decide if gap insurance is worth it to you. While you’re here, make sure to check out our new vehicle offers. We’re just a short drive away from Caledon, so drop by or contact us today!