What is Gap Insurance?

When you buy a new vehicle from Sterling Acura of Austin, one of the many popular optional insurance coverage plans you can opt for is gap insurance. But many Kyle drivers may find themselves asking, “What does gap insurance do?” Gap insurance helps cover the gap between the owed amount on the car and the true cash value of the car in the event of an accident. Learn more about how you can benefit from gap insurance.

What Does Gap Insurance Cover?

While gap insurance covers a variety of vehicle issues, Buda customers should be made aware that it only covers the damage of the vehicle, keep in mind, however, is that it is meant to cover damage to your vehicle, and not property or bodily injuries. Here’s an exact breakdown of what gap insurance does, and does not, cover:

• 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

Since gap insurance is optional and covers the total cost of the vehicle in the event of an accident, be sure to consult with your insurance company to see if this will fit with your existing plan or if it differs from what they offer.

Do I Need Gap Insurance?

Although gap insurance is not a necessity, this can come in handy when purchasing a new car and reviewing insurance plans and finance options. In addition, if your dealership offers a plan that includes deductible coverage, gap insurance can help San Marcos-area customers save money if they do get into an accident.

Explore All Insurance and Finance Options at Sterling Acura of Austin

Insurance is an essential component to setting up your new vehicle. That’s why it’s important to understand all of the different kinds of plans and offers available to drivers, such as comprehensive coverage. If you have any questions at all be sure to contact us to speak with an experienced member of our finance team to find the right coverage for your new Acura.