The Value of GAP Insurance for a New Vehicle Purchase

GAP insurance, or Guaranteed Asset Protection, is an insurance policy that covers the difference between the actual cash value of your vehicle and what you owe on your loan or lease if your car is totaled or stolen. This can be especially beneficial for new car owners, as your new vehicle is an investment into your mobility and lifestyle.

If you have GAP insurance and your car is totaled or stolen, your insurance company will first pay you the actual cash value of your vehicle. GAP insurance will then cover the difference between the actual cash value and what you owe on your loan or lease, minus your deductible. This product from Everett guarantees coverage up to 150% the value of your vehicle. In North Carolina, you are only able to add the GAP product at the time of purchase.

The cost of GAP insurance varies depending on the type of car you drive and the length of your loan or lease. However, GAP is typically relatively inexpensive, costing $20 on average when you finance with us.

Additional things to consider

Here are some additional things to consider when making a decision about GAP insurance:

• Your financial situation: If you cannot afford to pay the difference between the actual cash value of your car and what you owe on your loan or lease in the event of a total loss, GAP insurance can be a lifesaver.
• Your driving habits: If you are a high-risk driver, you are more likely to be involved in an accident that results in a total loss. If this is the case, GAP insurance may be a good investment for you.
• Market conditions: The market for vehicles in constantly change with price raises and drops without a moments notice, this product can help you protect your investment.

If you are still unsure whether or not GAP insurance is right for you, talk to our knowledgeable sales consultants or finance managers. They can help you assess your needs and make a recommendation.