What is gap insurance? Gap insurance stands for Guaranteed Asset Protection insurance and covers the model’s value and the balance owed on it at the time of trading in. Learn more about gap insurance below and don’t hesitate to contact our finance department with any questions.
Gap protection not only covers the difference in your car’s value and the amount owed on it, but it also covers the following:
Gap insurance ensures that you’re prepared and is beneficial because regular insurance doesn’t always cover these unfortunate events. It should be noted, however, that gap insurance doesn’t cover bodily injuries, mechanical repairs, or your deductible.
Gap insurance is extremely worthwhile, as it keeps you protected in case something unexpected occurs. Furthermore, since all vehicles lose value the minute they leave the lot, gap insurance will cover the difference between your vehicle’s worth and what insurance covers in the event of an accident.
Gap insurance can be obtained through your auto insurer. It will cost as low as the price of $20 a year (plus a one-time fee at the time of purchase) if you decide to get coverage. Some in-house financing car dealers may offer gap insurance at the time of your purchase.
Have any questions? Contact us for more information about gap insurance or other forms of insurance like comprehensive and collision coverage. While you’re at it, find out if car insurance covers the car or the driver. Still shopping for your new vehicle? Our financial team can get you started with the next steps! We look forward to helping you find the right Mercedes-Benz for your price point.