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What Is GAP Insurance?

closeup of a car key and a car insurance policy

When you get behind the wheel of your new vehicle purchase, you need to ensure you have the right coverage as you make your way through Cody and Laurel roads. While you’ll surely already have an insurance plan in place, you can also opt for GAP insurance. If you haven’t heard of this before you may have some questions. So, what is GAP insurance on a car? GAP Insurance, or Guaranteed Asset Protection Insurance, covers the difference between the value of the model and the balance still owed on it. But that’s just the beginning. Learn more about what is gap insurance and how it can be a great option to have in the long run from the experts at Underriner Honda!

What Else Does GAP Insurance Cover?

What is GAP protection, you may be wondering? Aside from taking care of the difference of your vehicle’s value and the amount you owe on it, GAP insurance comes in handy in a variety of other ways. Although it doesn’t cover bodily injuries, mechanical repairs, or your deductible, it covers situations that are a little more out of the ordinary so you’ll be covered no matter what happens. That’s why GAP insurance also covers:

  • Theft
  • Fire
  • Vandalism
  • Accidents
  • Nature damages (tornado, hurricane, flood, etc.)

Is GAP Insurance Worth It?

While you can surely see the value in it, you may be considering if GAP insurance is worth it. GAP insurance is certainly worth adding to your vehicle coverage as it covers other instances that you may face, such as theft of your vehicle. In addition, GAP insurance can make up the difference of the worth of your vehicle if you get into an accident. This can be very useful, especially if you have a new car as your vehicle depreciates quickly once you leave the dealership lot.

How Can I Get GAP Insurance?

If you’re wondering where you can get GAP insurance, you’ll be glad to know that there are several ways you can do so. This includes your regular auto insurer, a local dealership of your choice, or a business that strictly deals auto coverage. And, you won’t have to break the bank adding it to your regular coverage as it should only cost you as little as $20 a year along with a one-time fee at the time of purchase.

Find More Finance Features at Underriner Honda

Now that you know more about how GAP insurance works, make your way over to Underriner Honda to get even more car buying tips. And, our finance team is always on hand to walk you through all of your options and show you our great selection of new, used, and certified pre-owned vehicles for sale. Contact us today to learn more and to schedule a visit to our dealership near Red Lodge!

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