What is Gap Insurance?
Gap insurance can protect your new car’s value.
If your new car is totaled, you may only get reimbursed for the actual value of your vehicle, not what you paid for it. Gap insurance covers the difference between what you owe on your car and what the insurance company will pay you through your auto insurance policy.
New cars depreciate quickly the first year – it may be worth thousands less than what you owe after a year of ownership. But if your vehicle is a total loss after an accident, gap insurance ensures you’ll get the full amount back that you owe. That allows you to replace the car with a like model without losing money.
There are restrictions to gap insurance, so contact Kelly Miller Insurance Associates at (916) 652-3100 or email firstname.lastname@example.org to learn more.