What is Gap Insurance?

Couple looking to finance their car with a loan officer

What is gap insurance on a car? Gap insurance, or guaranteed asset protection insurance, is available coverage that will take care of the difference between the value of your vehicle and the amount still owed to pay off the loan. While gap insurance is not required, it is an affordable way to have peace of mind on the roads of Arlington and beyond. Have you been asking, “What is gap protection and how can it benefit me?” The team at Alexandria Volkswagen would be more than happy to assist you.

What Does Gap Insurance Cover?

What is gap insurance on a car, and why is it necessary? Not only does gap insurance cover the difference between your vehicle’s value and the amount you owe on it, that is not the only benefit this type of coverage offers. Keep in mind that gap insurance does not cover bodily injuries, mechanical repairs, or your deductible, however, it does protect against the following:

  • Theft
  • Fire
  • Vandalism
  • Accidents
  • Nature damages (tornado, hurricane, flood, etc.)

If your vehicle suffers significant damage while you still owe a significant amount on your loan, this budget-friendly coverage can ensure that you are not stuck covering costly out of pocket expenses.

Is Gap Insurance Worth It?

Absolutely! Gap coverage is very affordable and it can help to protect your vehicle investment when something out of the ordinary occurs. As soon as a new car leaves the dealership, it depreciates significantly, meaning that if you get into a collision early on, your car may be worth much less than what is left on your loan. Gap insurance allows you to drive with confidence in Washington DC.

How Can I Get Gap Insurance?

If you are interested in taking out gap coverage, it is easy to obtain. You can get gap insurance through your auto insurer, whether that be your preferred dealership or an insurance company. How much does gap insurance cost? In some cases, it can be as little as $20 a year in addition to a one-time fee at the time of purchase.

Alexandria Volkswagen Makes Auto Financing and Insurance Hassle-Free

If you have more questions about gap insurance or auto financing, do not hesitate to reach out to the team at Alexandria Volkswagen. We want to make sure you are 100 percent satisfied with your vehicle purchase and insurance coverage.

Alexandria Volkswagen 38.8365955, -77.0597743.