What is Gap Insurance on a Car?

Tiny car with coins and finance paperwork

What is gap insurance on a car? A common question we hear at Atlantic Volkswagen is, “What is gap insurance?” Gap insurance, or guaranteed asset protection insurance, is designed to take care of the difference between the current value of your vehicle and the amount remaining on your loan. Atlantic Volkswagen discusses what is covered by gap insurance as well as why this optional coverage is a smart choice for many Atlantic City and Wildwood drivers. 

What Does Gap Insurance Cover?

So, what is gap protection? Not only does gap insurance cover the difference between the value of your vehicle and what is still owed, it is not the only reason to consider this coverage. Gap insurance does not cover bodily injuries, mechanical repairs, or your deductible, however it does cover the following: 

  • Theft
  • Fire
  • Vandalism
  • Accidents
  • Natural damage (tornado, hurricane, flood, etc.)

Gap insurance is an affordable way to have added peace of mind on the roads of Millville. 

Is Gap Insurance Worth It?

Many drivers also ask us if gap insurance is worth the cost. The team at Atlantic Volkswagen highly recommends having gap insurance to protect your vehicle investment if something out of the ordinary occurs. Keep in mind that as soon as you leave the dealership in your new vehicle, it depreciates significantly. For example, if you are involved in a collision early on after purchasing your vehicle, you may owe more on it than it is currently worth. Gap insurance will cover the amount between the value of your vehicle and what your automotive insurance will cover.

Where to Get Gap Insurance?

Not sure how to get gap insurance? You are not alone, and you have a few options. You can secure gap insurance through your auto insurer, including your dealership of choice or a business that deals explicitly with auto coverage. Gap insurance can cost as little as $20 a year in addition to an affordable one-time fee when you purchase the coverage. 

Contact Atlantic Volkswagen for More Information

If you have additional questions about gap insurance, do not hesitate to contact Atlantic Volkswagen for more information. We want you to be able to drive confidently on the roads of Egg Harbor Township.


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