What Does Gap Insurance Cover?

If you’re searching for a new car around Alcoa, then you’ve probably started looking into the different financing and insurance options. One of the many insurance coverage options available is gap insurance, however, what does gap insurance do? In the event of an accident, gap insurance is meant to cover the gap between the remaining amount owed and the true cash value of the vehicle. Answer what does gap insurance cover? And learn more about gap insurance with Ole Ben Franklin Motors of Alcoa to see how it can benefit you.

Gap Insurance Coverage

So, what does gap insurance do? Gap insurance is additional coverage drivers can have to protect them around Lenoir City. However, this coverage is intended to only cover damage to the vehicle, not property damage or bodily injuries. Let’s explain the answer to, “what does gap insurance cover?” below:

Gap Insurance Covers:

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

Gap Insurance Does NOT Cover:

• Deductible (verify with the specific policy if this is covered)
• Engine failures and other mechanical repairs/malfunctions
• Death
• Extended warranties

The simple answer to “what does gap insurance do?” is that it is meant to cover the loss that drivers face in the event of an accident. While this coverage is optional, those looking for additional protection should talk with their insurance company about their options. 

Is Gap Insurance Necessary?

Among the many insurance options, gap insurance isn’t a necessity, however, it is a recommended choice for new car buyers. Some dealerships offer a gap insurance plan that includes deductible coverage that is especially helpful when accidents happen. Not only will drivers have peace of mind, but it can also help cover the expensive costs that might unexpectedly appear. Contact the financing team at Ole Ben Franklin Motors of Alcoa to talk about gap insurance options. 

Explore Your Financing Options with Ole Ben Franklin Motors of Alcoa!

If you’re still interested in what gap insurance can do for you, contact us to talk to our team about your financing and insurance option. We’ve got you covered with all the information you need when buying a new car whether it’s simply how to trade-in a vehicle or how to get a vehicle with bad credit. Our finance experts are here to guide you, so you can get back on Sevierville streets.