About Gap Insurance

What is gap insurance?

The value of a new vehicle depreciates quickly once you take it home from the dealership. For a few years, you may even end up owing more on your loan than the vehicle is worth. This can be a problem if your vehicle is totaled. Your auto insurance will cover the value of the vehicle, but that extra money you owe on the loan won’t be included. Fortunately, gap insurance is available to give you peace of mind.

How does gap insurance work?

Gap (or “guaranteed asset protection”) insurance is designed to shield you from additional financial stress if you owe more than your vehicle is worth. For example, if you drive a car that’s worth $12,000 but you still owe $15,000 on it, gap insurance will cover that additional $3,000 if the vehicle is stolen or wrecked.

When does gap insurance make sense?

If you’re only able to make a modest down payment, or if you have a long-term loan (48-60 months or longer), gap insurance is highly recommended. If you don’t have a lot of money, gap insurance helps ensure that you will be able to quickly replace your car after a bad collision. Instead of spending your hard-earned wages on a loan payoff, you can put them toward a new ride instead.

Here at Columbus Nissan, we offer reasonably priced gap insurance that you can purchase at the same time you buy a vehicle from us. To learn more about how gap insurance can help you, call or visit us at Columbus Nissan and speak with our friendly finance experts.