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What is Gap Insurance?

When you are purchasing a new vehicle in the Tuscumbia area, you also need to think about insurance coverage. While liability insurance is a required form of coverage, there are some plans that are optional. One of these is gap insurance. So, what is gap insurance, and what does gap insurance do? This optional, yet highly recommended, coverage takes care of the gap between the amount owed on your loan and the true cash value of the car when a covered incident occurs. Greenway Chevrolet Of The Shoals discusses what is included with gap coverage below. 

 

 

What Does Gap Insurance Cover?

If you have been considering gap insurance, you may be wondering what does gap insurance cover? Gap insurance covers damage to your vehicle but not the property or bodily injuries. Greenway Chevrolet Of The Shoals breaks down what is covered and what is not below:

Gap Insurance Covers:

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

Gap Insurance Does NOT Cover:

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

Should I Choose Gap Insurance

As mentioned above, gap insurance is not a requirement for Muscle Shoals drivers, but there are several reasons why it is a worthwhile investment. It is an affordable way to drive with complete peace of mind on the roads of Corinth. Your new vehicle depreciates rapidly as soon as you drive away from the showroom. If your vehicle is damaged or stolen within the first few years of ownership, you may still owe more on the vehicle than it is worth. Without gap insurance, you could be stuck taking care of that amount. Gap insurance is a small investment that could make a big difference down the road.

Take the Stress Out of Car Shopping with Greenway Chevrolet Of The Shoals

If you are shopping for a new vehicle in the Tuscumbia area, the team at Greenway Chevrolet Of The Shoals can help you find a vehicle that meets your needs and falls within your budget as well as answer any questions you may have about insurance coverage. Contact us today for more information, or begin the car-shopping process at home when you fill out our secure online financing application

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Greenway Chevrolet Of The Shoals 34.7199, -87.6681.