Is Gap Insurance Worth It?

When you purchase a new Cadillac from North Bay Cadillac, you want to ensure that your high-end investment is adequately protected. You’ll have several insurance options to choose from, one of which is gap insurance. But, what is gap protection? Gap insurance covers the “gap” between your vehicle’s current worth and what you still owe on it.

Now you’re likely wondering, “Is gap insurance worth it?” and because of the potential savings and low overall costs, many insurers will offer a resounding yes. Keep reading as we cover the details of gap insurance and help you figure out whether it’s worth the extra cost. If you have any questions, please don’t hesitate to reach out to us at 866-332-5189 for guidance.

What is Gap Insurance On A Vehicle?

Gap insurance, also known as Guaranteed Asset Protection, is a form of insurance that covers the difference (or the gap) between the cash value of your vehicle and the amount you still owe on it. This applies to vehicles that have a lease or loan.

In the unfortunate event that your vehicle is damaged in a collision, gap insurance will cover the cost between what your insurance will pay and the current cash value of your automobile. Gap insurance does not cover bodily injuries or property damage. Here’s a list of what gap insurance will cover in the event of a total loss:

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

How Do You Buy Gap Insurance?

There are several ways you can purchase gap insurance in the Manhasset area:

• Some auto insurance companies may offer gap insurance for as little as $20 per year.
• There are dealerships and car-loan companies that may offer gap insurance or other vehicle insurance coverage.
• Specialized car insurance companies will offer gap insurance for a one-time fee.