To help safeguard your financial future, Atzenhoffer Mitsubishioffers GAP insurance. However, before you invest in GAP insurance, it’s important to understand how it works and which drivers should consider buying coverage. To help you decide, here’s a look at how GAP insurance works.
How GAP insurance works
If your vehicle is badly damaged, stolen, or totaled in an accident, your regular car insurance will pay out the amount of your vehicle’s estimated worth. However, since vehicles depreciate, this payout may be much less than you owe on your auto loan balance. That’s where GAP insurance comes in — it pays the difference between the value of your vehicle and the remaining balance on your loan, so you don’t end up mired in debt.
Don’t risk losing money on your vehicle. Consider purchasing GAP insurance for your vehicle from Atzenhoffer Mitsubishi in Victoria, TX. Contact us to learn more about protecting your investment with GAP insurance.
The benefits of buying GAP insurance
Some drivers are better suited to gap insurance than others. When deciding whether to get GAP insurance, consider the following factors:
Is your auto loan term 60 months or more?
Did you pay less than 20 percent of the purchase price on your car’s down payment?
Are you leasing the vehicle?
Have you rolled over negative equity from an old car loan onto your current car loan?
Do you have a high-interest auto loan?
Do you have a low credit score or unpredictable income?
Does your vehicle’s model depreciate quickly?
If you can answer yes to one or more of the following statements, consider investing in GAP insurance. However, if you own your car in full, made a large down payment, or have a short-term auto loan, then GAP insurance probably isn’t for you. And once your vehicle is paid off, you can safely cancel your GAP insurance.