What is GAP Insurance?

a insurance specialist going over an accident

When you purchase a new vehicle in Nixa, the insurance options might be a little daunting. For instance, what is GAP insurance on a car? GAP stands for Guaranteed Asset Protection Insurance. It covers the difference between the value of the model and the balance still owed on the auto loan should the car be in an accident. Read on to learn more about what is GAP protection with the finance department at Thompson Cadillac.

What is GAP Insurance Protection, and What Does it Cover?

When you ask what is GAP insurance on a car, the answer is that you’re buying protection for the gap between your vehicle’s value and the amount you owe on it. GAP insurance doesn’t cover injuries, mechanical repairs, or your deductible, but it does cover a variety of incidents that can happen in Ozark and beyond that include:

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

Having GAP protection keeps you from having to pay out of pocket when your insurance won’t cover these incidents. 

Is GAP Insurance Worth It?

Now that you know the answer to, “What is GAP insurance?”, you might be wondering if it’s a worthwhile investment. Absolutely! Your vehicle depreciates as soon as you drive it off the lot, and GAP insurance will cover that sudden difference between the value and your equity should any of the above accidents happen soon after you purchase your vehicle. 

How Can I Get GAP Insurance?

GAP insurance is available through your Republic auto insurance company, but you can also purchase it through our finance department. What is the cost of GAP insurance? It can be as little as $20 a year plus a one-time fee when you purchase it. 

Let the Finance Department at Thompson Cadillac Protect Your Vehicle

From GAP insurance to Cadillac warranty coverage, the finance department at Thompson Cadillac in Springfield can help you protect your new car investment for years to come. Contact us with any questions you have about GAP insurance and other coverage.


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