What Is Gap Insurance?

January 1st, 2019 by

Photo of hands holding pencil and pressing calculator buttons over documents

What is gap insurance on a car? Gap Insurance, or Guaranteed Asset Protection Insurance, covers the value of the model and the balance still owed on it at the time of trading in no matter if it’s a loan or lease. When you want to apply for coverage, or if you just want to learn more, contact us at Beach Ford where our finance center can help answer your questions.

What Else Does Gap Insurance Cover?

What is gap protection? Apart from covering the difference of your vehicle’s value and the amount you owe on it, gap insurance covers a lot more to protect your vehicle. While it doesn’t cover bodily injuries, mechanical repairs, or your deductible, it covers:

  • Theft
  • Fire
  • Vandalism
  • Accidents
  • Nature damages (tornado, hurricane, flood, etc.)

Having this type of coverage comes in handy when regular insurance won’t cover all of these unexpected inconveniences. You never know when you’re going to need it, so it’s better to be prepared with gap insurance.

Is Gap Insurance Worth It?

Absolutely! Having gap insurance means protecting your vehicle investment when something out of the ordinary occurs, like the theft of your vehicle. And since your vehicle depreciates the second you drive off the lot, this insurance will cover the Gap between the worth of your vehicle and what your insurance will cover if you get into an accident.

How Can I Get Gap Insurance?

You can get gap insurance through your auto insurer whether that’s through your dealership of choice or a business that deals explicitly with auto coverage. If you decide to get covered, it’ll cost as little as $20 a year plus the one-time fee at the time of purchase.

Learn More at Beach Ford

If you’re ready to fully insure your new vehicle, contact our finance department at Beach Ford near Conway. Our knowledgeable staff is standing by to help answer any questions you may have.

More from Beach Ford

  • 2019 F-150 Raptor – Performance Elevated!

    For 2019, our factory-built, high-performance, off-road pickup that already delivers jaw-dropping performance, has some impressive new enhancements. Here’s a high-level glimpse of what’s new on the 2019 F-150 Raptor.

  • 2019 Transit Vans – A Tailor Made Fit

    In addition to their impressive configurability, capability, driving dynamics and Built Ford Tough durability, 2019 Transit Cargo vans, Passenger Vans, Chassis Cabs and Cutaways offer up some impressive enhancements for 2019.

  • 2019 Shelby GT350 and GT350R: First Look

    The 2019 Shelby GT350 is a thoroughbred capable of taking on the world’s most challenging roads and racetracks. The GT350/GT350R build on their deep roots in road racing, dating back to 1965, when the idea of transforming a great car into a dominant road racer first came about.

Posted in Finance