Is Gap Insurance Worth It?

What is gap insurance on a car and do I need it? Many San Antonio and Kerrville drivers ask themselves these questions every day, and the answer can really vary from person to person. Gap insurance protects you against the “gap” between your vehicle’s current worth and what you still owe on it. Though optional, it can be a huge asset if your car gets damaged or even totaled. Learn what is gap protection with our comprehensive guide below, and be sure to get more car buying tips from our team at Land Rover Boerne!

What is Gap Insurance On a Car & What Does it Cover? 

Let’s start at the beginning, what is gap insurance? “Gap” stands for Guaranteed Asset Protection, and this plan is designed to protect you from financial losses. If you purchase a new Range Rover and it is immediately damaged, the vehicle’s value will tank. However, you’ll still be responsible for paying off the original balance. Gap insurance will cover the cost between what your insurance will pay and the current cash value of your vehicle. 

What does gap insurance cover?

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

Is Gap Insurance Worth it for Me?

Now that you know what is gap protection, is gap insurance right for you? For most drivers, the peace of mind is well worth the modest cost – especially if you drive a luxury vehicle. Here are a few reasons why you might want to consider adding it to your insurance plan:

• New cars start depreciating the second that they drive off the lot.
• Driving in Fredericksburg can be unpredictable. You might never have an accident, or you might have one a week after you purchase your Land Rover.
• Insurance companies generally only cover the value of your car at the time of the accident. 
• If your car is totaled and you owe more than the car is worth, gap insurance will cover the difference to keep you afloat.
• Though gap insurance provides a huge benefit, it is surprisingly affordable and easy to tack onto any plan.

How Do I Buy Gap Insurance?

If you’ve decided that gap insurance is right for you, there are a few ways to find coverage. Many auto insurance companies offer gap insurance for only around $20 a year, and you can also get gap insurance at dealerships when you purchase your vehicle. Feel free to ask us about your options at Land Rover Boerne!

Learn More About Gap Insurance in Boerne

So, is gap insurance worth it for you personally? We’d love to help you make that decision at Land Rover Boerne. Contact us to learn more about the benefits of boosting your insurance coverage, or stop by Boerne to chat in person.