If you want to buy a new Ford vehicle, we suggest you head in our direction so you can check out our extensive inventory of the latest Ford models. When you purchase or lease a new vehicle, some people will tell you that getting gap insurance is a good idea. While that’s the case in many instances, not every driver needs gap insurance.
Gap insurance is a form of car insurance. Your standard car insurance is designed to cover many things, while gap insurance is made to do just one thing. Your standard coverage will pay up to the current fair market value of your vehicle if it’s totaled. While that’s great, it can be a problem for drivers who owe more than what their automobile is worth when their car is destroyed. That’s when gap insurance can help.
Gap insurance covers the difference between the balance on your car loan and whatever the current value of your car is at the time it’s totaled. Gap insurance will pay out under two circumstances. Your policy will pay if your vehicle is totaled due to an accident or theft. It will also pay if your automobile is stolen and is never recovered.
Clearly, if you don’t have a car loan, you don’t need gap insurance. You also don’t need this kind of coverage if you can afford to pay the gap between your loan balance and your car’s current market value without putting a strain on your finances.
You may want to get gap insurance if you didn’t put much down when you purchased your car or your car loan stretches out for five years or more. If your automobile is expected to depreciate rapidly or you consolidated the remaining balance of a previous loan into your current car loan, it’s often wise to buy gap insurance.
To see if gap insurance is right for you, visit our Ford dealership near El Cajon, CA. We look forward to seeing you at Kearny Pearson Ford soon!