Why It's Important to Buy Gap Insurance

A new car is only new and at full value while it’s on the dealership lot. The moment the vehicle is purchased it immediately starts to lose value. If the vehicle is a total loss from an accident or some other comprehensive damage, regular insurance will only pay you for the fair market value of the vehicle at the time not the loan balance.

Typically, what you owe is more than what the insurance company will pay. This can be a huge problem because you would be stuck paying the difference for a car you no longer have while still needing to purchase another car. Gap insurance is important because it would cover the difference that the insurance company doesn't pay. This will ensure your vehicle is fully covered no matter what.

If you would like more information on gap insurance come visit Bob Allen Nissan today. We are conveniently located in Danville and will be happy to assist you with your insurance needs.

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