What is GAP Insurance?
GAP insurance is an optional insurance coverage that provides valuable financial security on your vehicle during the early years of your auto loan. During this time, your vehicle’s value may be less than the amount financed, which can put your finances at risk in the event of an accident. At Graff Chevrolet in Bay City, our auto loan specialists would be more than happy to provide you with all of the information you will need to decide if GAP insurance is right for you.
How Does GAP Insurance Work?
GAP Insurance is essentially a safety net if you ever find yourself facing a total loss – this could be because of a theft, an accident, etc. GAP insurance would pay the difference between the actual cash value of the vehicle and the current outstanding balance on your loan or lease. Simply put, GAP Insurance makes sure that your auto loan gets paid. In some instances, it may even pay your normal insurance deductible. While GAP insurance typically comes with a small premium, this is nothing compared to what you could owe in the event of a total loss. To learn more about GAP Insurance and find out if this protection plan is right for you, feel free to contact our financial experts! They would be more than happy to provide you with all the information you may need, as well as assist you with any other automotive need you may have. To reach our financial team, call (989) 684-4411.