Is GAP Insurance Worth It?

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Lynn and Burlington drivers want the best coverage possible for their new Honda. While you may already have the standard car insurance plan in place that is required by law, that doesn’t mean you can’t equip yourself with other optional forms of coverage like GAP insurance. And, since it is optional, you may be wondering: “Is Gap insurance worth it?” There are clear benefits to having GAP insurance, but only you know what suits you best. Learn more with the automotive professionals at Honda North.

What Is Gap Insurance?

If you have never heard of it before you may ask: “What is GAP insurance?” GAP (Guaranteed Asset Protection) insurance is designed to make up the difference between the cash value of your car and the amount you still have to pay on it. This form of coverage is available to customers who are looking to lease or finance a new Honda model for sale.

Do I Need Gap Insurance?

Despite the fact that GAP insurance is not required by law, there are many reasons why it can be another form of coverage you may want to consider. These are just some ways GAP insurance can offer you even more peace of mind behind the wheel:

  • Depreciation happens the moment you drive off the dealership lot.
  • Accidents can happen at any time, including right after you drive a new vehicle off the lot.
  • Most insurance companies only cover what your vehicle is worth at the time of the accident.
  • If your new car is totaled or stolen and you owe more on it than its current deemed value, gap coverage accounts for that difference.
  • The cost of gap insurance is relatively low, and it is easy to obtain, so there is really no reason NOT to have it.

How Do I Buy GAP Insurance?

Just as you have plenty of choices when it comes to selecting your standard vehicle coverage, there are also several ways you can go about getting GAP insurance. Along with your local dealership like Honda North, here are a few other places where you can find it:

  • Your regular auto insurance company may offer it for as little as $20 per year.
  • You may be able to buy it for a one-time fee from your dealership or car loan company.
  • You can get it from a specialized GAP insurance company for a one-time fee.

Find More Finance Resources at Honda North

What do you think, is GAP insurance worth it? You can find even more helpful finance features at Honda North such as what does guaranteed car financing mean, what is good mileage for a used carhow car insurance cover stolen cars with the keys left in, or how you can get car financing with bad credit. Our dedicated finance team is always on hand to answer all your questions and find the vehicle with the right plan to meet your needs. Contact us today to learn more and to schedule a visit to our dealership near Lawrence!

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