Purchasing a new vehicle means you’ll need to make decisions about your insurance coverage. Beyond the legally required insurance, there are optional insurances you can purchase for additional protection. Gap insurance is one of these additional insurance policies. So, what does gap insurance do? Put simply: it’s designed to cover the gap between the owed amount on the car and the true cash value of the car at the time of an accident. Learn the specifics of this type of coverage below.
While gap insurance covers a variety of issues related to your vehicle, it’s important to note that it does not cover bodily injuries or property damage. Here’s a more detailed breakdown of what gap insurance does and doesn’t cover:
The main takeaway from the question “what does gap insurance do,” is that it’s meant to cover total loss in the event of an accident. Though it’s an optional coverage, it can be valuable if you’ve financed a vehicle and owe more than the vehicle is worth.
In short: no. But, it can offer added protection so you don’t end up owing money on a vehicle you can’t drive. Gap insurance is especially helpful if your dealership offers a plan that includes deductible coverage. Having this coverage can offer peace of mind when faced with an unexpected event. Speak with the financing department at Mercedes-Benz of Charleston to learn more.
No matter if you have just started looking or have selected your next vehicle, being well-informed on your insurance options can save you money and frustration down the road. Get in touch with Mercedes-Benz of Charleston to get your insurance questions answered at our Charleston dealership.
