If you’ve been exploring the insurance options on a new Honda car, truck or SUV, you may have asked: “What is GAP insurance?” GAP stands for Guaranteed Asset Protection, and it is designed to cover the difference between the value of a vehicle and the balance still owed on it. Learn more about Honda GAP insurance, what it covers, and how it works in this guide, courtesy of the finance team here at Lou Sobh Honda.
What is GAP insurance on a car? Covering the difference between your vehicle’s value and the amount you owe on it, GAP insurance is particularly beneficial if your vehicle has suffered serious damage in an accident. Dawsonville drivers should note that GAP insurance does not cover bodily injuries, mechanical repairs, or your deductible. If you opt for GAP insurance you’ll have coverage for damages to your vehicle from:
Most auto insurance policies won’t cover these unexpected occurrences, which is why GAP insurance can be especially valuable for Gainesville drivers.
In the opinion of the finance specialists at Lou Sobh Honda, GAP insurance is definitely worth having. The extra peace-of-mind that comes from knowing that your investment is protected when something out of the ordinary happens can be invaluable to a wide range of Alpharetta drivers. Also, since the value of your vehicle begins to depreciate the moment you drive off the lot, having this insurance cover the difference between how much your car is worth and how much you are still paying on it, can save you money in the event of a collision.
GAP insurance can be purchased through your local Cumming dealership or from a trusted auto insurance company. Most often you’ll find that GAP insurance can cost as little as $20 a year, in addition to the one-time fee at the time of purchase.
We hope we’ve adequately answered the question, “What does GAP insurance do?” As your local Honda dealer, we are happy to explain your insurance options, as well as provide advice on everything from the do’s and don’ts of car buying, how to find your Equifax credit score, and more! Check out our car buying tips, and if you are ready to get behind the wheel of an exciting new Honda, use our payment calculator to find out what your monthly payment will be. If you have any questions, feel free to contact us.
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