What Is Gap Insurance?

Gap (Guaranteed Auto Protection) insurance protects you in the event of the worst-case-scenario—specifically when your car has been totaled or stolen. This may sound frightening, but we want you to know you can trust our dealership to offer you sound advice about car ownership. The professionals at Sansone Nissan are here to elaborate on what gap insurance is and who may benefit from it, as well as when.

If you take out a Nissan auto loan and choose a long payment plan or give only a small down payment, it’s very likely that you’ll be upside down on your loan, meaning you owe more than it’s currently worth. Thanks to vehicle depreciation and the fact that many insurance policies only cover the vehicle’s current value in the event the car is totaled, gaps where a car owner may owe the bank for a vehicle they don’t have anymore are fairly common.

Essentially, gap insurance is a supplemental, optional insurance that covers the difference between what the vehicle is currently worth and the amount you still owe on it. This way, your insurance coverage (minus the deductible), plus the amount your gap insurance offers, essentially ensure you can pay off your financial institution in full. There are rules and restrictions to the coverage, so be sure to check with a financial expert to see if it’s the right fit for you and your Nissan Altima or Nissan Pathfinder near Woodbridge, NJ.

To learn more about gap insurance, get in touch with us here at Sansone Nissan. As your closest Nissan dealership, we’re ready to help our customers in any way we can. Come see us today in New Jersey! 

Posted in Uncategorized | No Comments »