Should You Purchase Gap Insurance?

 

Here at Heritage Honda Parkville, we’re dedicated to providing drivers in the Parkville and greater Baltimore, MD areas with the best deals on new 2019 Honda models for sale. That’s why we want to help our drivers get as much information as possible when shopping for a new car.

Buying a new car can seem like a complicated process, and that’s why coming prepared is valuable. To help, we’re providing some information on gap insurance.

When you buy a new car, you’ll have several insurance options and knowing which ones are right for you isn’t always easy. Gap insurance, also known as guaranteed asset protection, is a type of insurance you may want to consider if you’re financing or leasing a new model like the 2019 Honda CR-V.

Gap insurance works in conjunction with other policies like collision protection and comprehensive protection. The purpose of gap insurance is to cover you in the event you total your car and still owe more than its current value.

When you finance a vehicle, you owe your lender the sale price of your car. However, the actual value of your car isn’t as high. So, while collision coverage will cover the current value of your vehicle, if your car is damaged beyond repair you may still owe the lender the remaining cost. With gap insurance, you’re protected from paying that cost out of pocket.

Overall, gap insurance protects you from being without a vehicle and still having to pay for it. If you’re unsure if gap insurance is right for you, visit our Parkville Honda dealership today. We’re happy to help you find the right model for you and coverage that fits your needs. Find us at 9213 Hartford Road. 

Categories: Finance, News