What is Gap Insurance?

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You have several decisions to make when shopping for a new car. One of those decisions involves insurance coverage. While some forms of coverage are required, others are optional. Gap insurance is an optional type of insurance coverage, but it is highly recommended and quite affordable. So, what does gap insurance do? The purpose of gap insurance is to cover the gap between the amount still owed on the vehicle and what it is actually worth when an accident occurs. Stevens Point Volkswagen is here to take a closer look at what is covered by gap insurance and why it is a smart investment for many Plover drivers.

What Does Gap Insurance Cover?

Gap insurance covers a variety of issues related to your vehicle. An important thing for Wausau drivers to know about this type of coverage is that it is meant to cover damage to your vehicle, and not any property or bodily injuries. We have provided a quick guide to gap insurance coverage below:

Gap Insurance Covers:

  • Theft
  • Fire
  • Vandalism
  • Accident
  • Acts of nature (tornado, hurricane, flood, etc.)

Gap Insurance Does NOT Cover:

  • Deductible (though some gap insurance policies allow this)
  • Engine failures and other mechanical repairs/malfunctions
  • Death
  • Extended warranties

So, what does gap insurance do? Its purpose is to cover total loss in the event of an accident. Although gap insurance is not required, many Wisconsin Rapids drivers enjoy the peace of mind that it provides.

Do I Need Gap Insurance?

In short: no. However, it is smart to take advantage of this coverage. Gap insurance is especially helpful if your dealership offers a plan that includes deductible coverage. If you are involved in a collision, especially early on in your vehicle ownership, you will be very happy that you chose to add on this insurance coverage.

Stevens Point Volkswagen Makes Financing Hassle-Free 

If you still have questions about insurance coverage or financing, do not hesitate to reach out to the experts at Stevens Point Volkswagen. We want to make the car buying process stress-free. With gap insurance, you can drive confidently through Stevens Point and beyond. Discuss your options with our finance team today.

More from the Stevens Point Volkswagen Finance Department

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