Is Gap Insurance Worth It?

There are many decisions to make when you buy a car, and some of the most common insurance questions we hear is “What is gap insurance on a car? Is gap insurance worth it?” Given the low cost and the generous coverage, many drivers find that gap insurance is well worth the small investment for added peace of mind. Find out just what is gap protection and why it’s so valuable for the New Haven area with the finance team at Acura of Milford.

What is Gap Insurance on a Car?

So, what is gap protection? Gap stands for Guaranteed Asset Protection. This insurance covers the difference between the cash value of your car and the amount of money you still owe – also known as the “gap”. If your car is severely damaged, gap protection will cover the cost between what your insurance will pay and the cash value of your car. And the good news is that whether you finance or lease, you can take advantage of this insurance. Gap protection will cover the following in the event of a total loss:

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

Why Buy Gap Insurance?

Is gap insurance worth it? Many Fairfield drivers find that the answer is a clear yes, and here’s why:

• The moment you drive off the lot, your vehicle undergoes depreciation.
• Accidents are unpredictable, and dealing with an accident shortly after your purchase a car can be a huge financial strain.
• Insurance companies typically only cover the cost of your vehicle at the time of the accident.
• If your vehicle is totaled or stolen, gap insurance protects you if you owe more than the car is worth.
• Gap insurance is a low-cost plan and that’s easy to obtain in Bridgeport.

How Do I Buy Gap Insurance?

If you’ve decided gap insurance is right for you, there are several ways to obtain it around Milford.

• Auto insurance companies offer very affordable gap insurance – costing as little as $20 per year!
• Dealerships and car loan companies can offer gap insurance, along with other vehicle insurance coverage.
• Specialized car insurance companies often offer gap insurance for a one-time fee, rather than an annual payment.

Find Out More About Auto Financing with Acura of Milford

Now that you know what is gap protection, are you ready to explore your financing options? Contact us at Acura of Milford to see what insurance plan is right for you!