What Does Gap Insurance Do?

Shopping for a new car can be exciting, but it can also be nerve-wracking! If you’re looking for extra peace of mind on your purchase, one of our top car buying tips is to get gap insurance. What does gap insurance cover and why would I need it? Let’s find out.

What Does Gap Insurance Cover?

You may have heard of financing terms like buy here, pay here and extended warranties, but not just every customer has heard of gap insurance. Gap insurance covers the gap between what is owed on your car and what it is worth in case of a collision. While it does not cover property damage or bodily injuries, it covers a wide variety of other issues:

Gap Insurance Covers:

  • Theft
  • Fire
  • Vandalism
  • Accidents
  • Acts of nature (tornado, hurricane, flood)

Gap Insurance Does NOT Cover:

  • Deductible (some gap insurance policies do allow this)
  • Engine failures and other mechanical repairs or malfunctions
  • Death
  • Extended warranties

So, what does gap insurance do? It protects you from complete loss if you get into an accident. And while hopefully you’ll never run into trouble on the Blackfoot and Rexburg roads, gap insurance can be a huge sigh of relief in the most trying times.

Is Gap Insurance Necessary?

You know what does gap insurance do and what it doesn’t do, so is it really necessary for you? Our finance team can help. Gap insurance is optional and some Pocatello drivers go without it. But it can be extremely valuable for other drivers. For example, if you have a plan with deductible coverage, you can save a ton. And if you get into an accident where you owe more than the car’s value, no need to deal with enormous out-of-pocket expenses. 

Find Out More With Sayer Chrysler Dodge Jeep Ram

We’ve talked about what does gap insurance cover, but if you still have questions, we’re here with the answers! Contact us at Sayer Chrysler Dodge Jeep Ram or stop by Idaho Falls to chat with our finance team. We’d be happy to help you find a financing plan that works for you.

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