Is Gap Insurance Worth It?

There can be a lot of decision to be made when you purchase a new car near Hartselle or Hanceville. Insurance coverage decisions are among the most important, because they affect your budget and set the scene for what happens after an accident. Once you’ve purchased insurance that’s required, you might be wondering if gap insurance is worth it. What is gap insurance for cars? Gap insurance covers the “gap” between your vehicle’s current worth and what you still owe on it in case something happens to yur vehicle. Learn more about gap insurance so you can decide if gap insurance is worth it for you. The Mitch Smith Chevrolet, Inc. finance department has the information you need.

What is Gap Insurance On A Car?

What is gap protection, and is it something Decatur drivers need? Gap insurance covers the difference—or gap—between your car’s value and what you owe on your loan or lease. Gap protecton applies to environmental disasters or accidents. Car accidents will be covered by liability or comprehensive insurance, while gap insurance for cars covers incidents like:

Gap Insurance Covers:

• Theft
• Fire
• Vandalism
• Accident
• Acts of nature (tornado, hurricane, flood, etc.)

Want to know what else gap insurance covers and doesn’t cover? Get in touch with our finance team for more information!

Do I Need Gap Insurance?

Gap insurance is optional, but it’s recommended because it’s inexpensive coverage that protects your assets and can save you a significant amount of money should you have any of the listed problems. Your car begins to depreciate as soon as you purchase it, which creates the gap between your car’s worth and your loan amount. Most insurance companies will only cover what the vehicle’s worth. If your vehicle is totaled or stolen, you’re still responsible for the loan amount that isn’t covered by your insurance payout. That’s where gap insurance comes in.

Gap insurance can cost as little as $20 a month, and it can often be bundled with other forms of insurance. With being affordable and easy to obtain, we think gap insurance is worth it.

Learn More About Insurance for Your Car with Mitch Smith Chevrolet, Inc.

Being informed about your car insurance options makes it easy to decide if gap insurance is worth it. The Mitch Smith Chevrolet, Inc. finance team is here to answer your questions and help you make the best decision for your budget. Want to learn more about automotive finance and insurance on your own? Visit our car-buying tips hub.