Benefits of Buying GAP Insurance | Hamden, CT

 

Most people take out a loan when they buy a car.  Unfortunately, cars depreciate rapidly, especially when purchased new. However, if your car is lost, totaled, or stolen, you could end up owing more than your car is worth. You’d still have to pay off the difference between what your insurance company says the car is worth and how much is left on your loan.

That is unless you have GAP insurance. GAP insurance will cover that difference for you, so you don’t end up with two car payments. Here are a few more benefits to buying GAP insurance from the dealership.

No Deductible

If you purchase GAP insurance from us at the dealership, there will be no deductible. If you purchase it somewhere else, you could end up with a deductible.

No Cancellation

Once you purchase GAP insurance as part of the car-buying process, you will have it for the life of your loan, and it will not be canceled. If you purchase it through your auto insurance and make too many claims, your coverage could get canceled.

You Can Switch Insurance

If you bought GAP insurance through your auto policy, you have to stay with that company for the life of your loan. When you buy it from the dealership, you can switch insurers as many times as you want.

Will Not Raise Insurance Rates

The more claims you file with your auto insurance, the more likely they will raise your rates. If you have separate GAP insurance, you won’t get a double hit when you need to make a claim.

More Coverage

In general, GAP insurance you purchase from the dealership will give you a greater coverage amount. Your auto insurance GAP coverage might not give you much wiggle room.

Is GAP insurance right for you? You can learn more from our finance department at Bob Thomas Ford.