When you buy a new-to-you vehicle at Major World, you’ll need to have it insured before you can drive it off the lot. There are many insurance options to choose from at a Long Island City dealership or insurance company, one of them is gap insurance.
What does gap Insurance do? To put it simply, gap insurance is designed to cover the “gap” between the true cash value of your vehicle and the amount you still owe on your car loan in the event of an accident. For instance, if you owe $10,000 on your car loan, but your vehicle is only worth $6,000 at the time of your accident, gap insurance will cover the $4,000 “gap” in the cost.
Follow along with Major World as we discuss what is covered and what is not covered under a gap insurance plan.
What’s Covered Under Gap Insurance?
What does gap insurance cover? Gap insurance will cover a variety of events that may occur to your vehicle in Queens. This can range from theft to act of nature. However, gap insurance does not cover property damage or bodily injury. To get the best coverage on your vehicle, it’s recommended that you buy gap insurance in conjunction with comprehensive insurance and collision insurance. See what gap insurance covers below:
What Gap Insurance Covers:
- Acts of nature (tornado, hurricane, flood, etc.)
What Gap Insurance Does NOT Cover:
- Deductible (dependant on your policy)
- Engine failure
- Other mechanical repairs or malfunctions
- Extended warranties
Gap insurance is meant to cover the total loss of your vehicle in the event of an accident. While gap insurance is optional coverage, its low price and great benefits make it worthwhile. Talk with your local Brooklyn car insurer or our finance team if you’re interested in purchasing gap insurance on your next vehicle purchase.
Get Excellent Insurance Coverage at Major World
Gap insurance coverage is a great option for Bronx drivers who want to protect their finances in the event of an accident. Learn more about gap insurance and used vehicle financing when you read the car buying tips available at Major World. You can also contact our team if you have any questions about our financing process or if our insurance options.