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Is Gap Insurance Worth It?

Are you thinking about purchasing a new car at Longwood Mitsubishi? If so, you also need to think about insurance coverage. Comprehensive insurance coverage will cover any damage to your vehicle outside of an accident, but you may still have questions about gap insurance and why it is necessary. Gap insurance covers the “gap” between what your vehicle is currently worth and the amount still owed on your loan. A common question we hear at Longwood Mitsubishi is, “Is gap insurance worth it?”

Because of the potential savings and how affordable gap coverage can be, we highly recommend gap insurance. Have you been asking, “What is gap protection, and will it benefit me?” Our finance experts are here to help. 

 

 

What is Gap Insurance On a Car? 

Gap insurance, or guaranteed asset protection, is a type of coverage that takes care of the difference (or the gap) between what your vehicle is worth and what you currently owe on your auto loan. While gap insurance won’t cover bodily injury or property damage, it will cover your vehicle if it is damaged through an environmental disaster or an accident on the roads of Orlando. In the event of a total loss, here is what gap insurance will cover. 

Gap Insurance Covers:

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

Is Gap Insurance Required?

Gap insurance is not required in Sanford, however, there are several reasons to opt for this available insurance coverage. 

  • As soon as you leave the showroom, your vehicle depreciates in value. 
  • Collisions can occur at any time, even soon after you purchase your vehicle. 
  • Most insurance companies only cover what your vehicle is worth when the accident occurs.
  • If your new vehicle is totaled or stolen and you owe more than its current worth, gap insurance takes care of the difference. 
  • It is easy to add on gap insurance and it is affordable. 

How to Purchase Gap Insurance

How can you get gap insurance? It is actually quite easy to secure this type of coverage. 

  • Auto insurance companies in the Longwood area often offer gap insurance for as little as $20 per year.
  • Specialized car insurance companies offer gap insurance for a one-time fee.

Get the Right Coverage with Longwood Mitsubishi

When shopping for a new vehicle, you want to make sure that you have proper insurance coverage so that you can drive with complete peace of mind. If you have questions about coverage, do not hesitate to contact us for more information. We would be glad to help. 

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Longwood Mitsubishi 28.707817, -81.325703.