What Does Gap Insurance Cover?

July 22nd, 2021 by

Man and Woman Signing Contract
 
When you buy a brand new car, you might feel overwhelmed by all of the different insurance options available. For example, just what does gap insurance do? Gap insurance is designed to cover the gap between the owed amount of your car and the true cash value at the time of an accident. This can save you a ton of money if you encounter the unexpected on the Belton roads. Let’s go into just what gap insurance covers and why it might be a good choice for you, and if you have any questions, don’t hesitate to reach out to us for car buying tips at Temple.
 

 

What Does Gap Insurance Cover?

So, what does gap insurance cover and not cover in Killeen? Gap insurance was designed to protect you in case of a total loss during an accident. And while it protects you from many circumstances, like damage to your vehicle, it doesn’t cover everything. It’s important to remember that both property and bodily injuries are excluded from gap insurance, but they are often included in other parts of your insurance plan. Here is a quick summary of what you can expect from gap insurance:

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 Get Gap Insurance?

Gap insurance is considered an optional insurance because it’s not required by law. However, this additional protection can give drivers peace of mind on the Waco roads – especially if your plan offers deductible coverage. That means you can enjoy your brand new car without extra stress . Not sure if gap insurance is right for you? Talk with our finance experts at Don Ringler Toyota for personalized assistance. Our team will help you create a custom plan that suits your budget and needs.

Find Out More with Don Ringler Toyota

If you have any questions about what gap insurance covers or you’d like a quote, feel free to contact us at Don Ringler Toyota. We’d be happy to talk through your options, so you can drive with confidence. Stop by our dealership in Temple today!

 

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