What is Gap Insurance?

When shopping for a new car in San Jose, you will be faced with a lot of important choices regarding financing and insuring your investment. One of those options is gap insurance. What does gap insurance cover? This helpful protection will cover the gap between the owed amount on the car and the true cash value of the car at the time of an accident. Discover whether this kind of coverage makes sense for you.

What Does Gap Insurance Cover?

While gap insurance does protect your vehicle on the Santa Clara streets, it only covers damage to your vehicle, not any bodily injuries or property destruction. Arm yourself with the knowledge you need to make this important decision.

• Gap Insurance Covers:

• • Theft
  • Fire
  • Vandalism
  • Accident
  • Acts of nature (tornado, hurricane, flood, etc.)

• Gap Insurance Does NOT Cover:

• • Deductible (though some gap insurance policies allow this)
  • Engine failures and other mechanical repairs/malfunctions
  • Death
  • Extended warranties

In short, gap insurance covers your total loss in the event of an accident, which can really make a difference depending on your specific situation.

Do I Need Gap Insurance?

Gap insurance is not required, but it is certainly helpful to have while you are still choosing your primary insurance and vehicle financing options. It is especially beneficial if your dealership offers a plan that includes deductible coverage, and will grant you extra peace of mind which is invaluable. Still not sure if gap insurance is for you? Our financing department can answer all your questions and guide you toward the right decision.

Explore Your Options at Capitol Acura

Purchasing a new or used car near Milpitas is a big decision that can feel overwhelming, which is why fully understanding your options will help you shop with confidence. Get a better sense of what you can afford with our handy payment calculator, and contact us with any sales, financing, or insurance questions. Curious about refinancing an auto loan or leasing a car with bad credit? We can help with that, too.