Why Gap Insurance Matters

 

Every state differs in its approach to minimum automotive insurance, but gap insurance is not typically included among those minimum requirements. Knowing that it’s going to cost you a little extra on the front end, is gap insurance a worthwhile purchase for Plant City, FL customers when buying a new or pre-owned Mercedes-Benz automobile?

It is important to first understand what gap insurance is. When you finance your vehicle, especially over longer periods like five or six years, there is a good chance that for most of the first year or two of the loan, you are going to owe more on that car than the car itself is actually worth. Knowing this, if you end up in an accident and your vehicle is declared a total loss, you could owe your financial institution quite a bit more than the number you’ll see on the insurance check you’ll end up getting.

Gap insurance exists to cover the difference in those two values. It helps ensure that you can pay off the entirety of the totaled car and walk away clean with an eye toward buying something else here at Fields Motorcars. There is nothing worse than staring down two automotive payments just to drive one car, especially when the accident may not have been your fault in the first place.

That brings us back to the question as to whether gap insurance is a worthwhile investment. That depends entirely on the risk profile of the person buying the vehicle and the insurance policies. If you want that extra protection, give your insurance agent a call and add the extra coverage to your policy. We often recommend adding gap insurance to a policy, but in the end, the decision is totally up to you. Buying it certainly is the safer way to go.

Categories: New Inventory, Finance
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