What is Gap Insurance?

You may have heard about gap insurance when covering vehicle insurance options, and wondering to yourself, "What does gap insurance do?" Gap insurance is designed to cover the remaining balance of your auto loan if there is a deficit between the cash value of your vehicle and the amount owed on your vehicle if an accident occurs. Audi Fletcher Jones goes into more detail on this optional insurance to make sure you're getting the right level of protection. 

So, What Does Gap Insurance Cover?

What does gap insurance cover? The purpose of gap insurance is to cover your vehicle, not other damages such as bodily injury or property damage. See what gap insurance can protect against, and what it doesn't, below: 

Gap Insurance Covers: 

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

Gap Insurance WON'T Cover:

• Engine failures 
• Additional mechanical repairs/malfunctions
• Extended warranties
• Death
• Deductible (check your policy as some, but not all, do allow for this)

A quick answer to, "What does gap insurance do," is that it protects you from a total loss on your vehicle. If your vehicle is valued less than your loan, you'll be left making payments on a vehicle you can no longer drive if you don't carry this coverage. 

Should I Get Gap Insurance for My Vehicle? 

Gap insurance isn't mandatory, and there are times where it may not be needed. If you pay for a vehicle in full, or if you purchase a pre-owned model that has already experienced its biggest depreciation hit, gap insurance may not be needed. However, if you're purchasing a new vehicle, gap insurance can be a smart choice that can help protect your investment and financial future. To learn more about if gap insurance is right for you, reach out to the Audi Fletcher Jones finance center. 

Learn More With Audi Fletcher Jones

If you want to protect your vehicle and finances, Audi Fletcher Jones can help you work through your insurance options, and also discuss options like Audi Care to ensure your vehicle continues to run at its best. Touch base with us today to learn more about protecting your vehicle while on the roads around Newport Beach and Costa Mesa!