What is Gap Insurance?

When you’re ready to buy a new vehicle in Walla Walla, you might be offered unnecessary coverage. Gap insurance may or may not be necessary for you. But, what is gap insurance on a car? Guaranteed asset protection, or gap insurance, covers the difference between the cash value of your car and the amount still owed on it. Learn more about what is gap insurance on a car and how it can protect you after an accident with the finance team at Underriner Honda of Walla Walla. 

What is Gap Protection?

So, what is gap protection and how can it help protect Dayton drivers? Applied to either a financed or leased car, gap insurance is a smart investment to make. Gap protection covers the difference in what you owe and cash value if your car is totaled in an accident or lost in a theft. Since gap insurance is inexpensive, most finance experts agree that gap insurance is a worthy investment.

Do I Need Gap Insurance?

But, how does gap insurance work? Learn more about how gap insurance breaks down to insure drivers:

• Depreciation happens the moment you drive off the dealership lot, meaning you owe more than the car is worth immediately.
• Since most insurance companies will pay out what the vehicle is worth if totaled or stolen, you are left with the remaining balance to pay off.
• Gap protection covers the remaining balance so you aren’t paying for a car you don’t have.
• Gap insurance is inexpensive and easy to acquire, making it a great investment and added peace of mind.

How to Buy Gap Insurance

Buying gap insurance is an easy process. You can buy gap protection from your car insurance company for $20 a year or as a one-time fee from the dealership, car loan lender or an insurance company specializing in gap insurance.

Contact the Finance Center at Underriner Honda of Walla Walla

Have questions? Contact us to learn more about gap insurance and how to obtain it in College Place. Our finance team can answer any questions you might have about car insurance and financing vs. leasing when you’re searching for your new car at Underriner Honda of Walla Walla. Apply for financing online and get the car buying process started today! Looking for other ways to protect your ride? Explore extended warranties with our team today!