When You Need Gap Insurance

January 7th, 2019 by

Now that we’re officially into 2019, it’s a great time to shop for a new 2019 Mitsubishi model like the 2019 Mitsubishi Eclipse Cross. Here at your Clarksville, IN Mitsubishi dealership, we want all our new and returning drivers to have access to the best, whether it’s a new model, expert service, or information.

Right now, we want to provide a quick breakdown on a popular topic, gap insurance. Gap, or guaranteed asset protection, is a type of vehicle insurance that you can bundle with other car insurance policies like comprehensive coverage or collision coverage.

The big question we often get here at your Mitsubishi dealership serving Louisville, KY is whether or not you need it. So, we want to provide some answers. When you finance or lease a new vehicle, the amount you owe is greater than its value once you drive it off the lot. If you get into an accident and total your car, gap insurance protects you from extra costs.

For example, if you buy a vehicle and still owe $20,000 on your auto loan when your car is totaled, without gap insurance, you will likely still owe money to your lender. That’s because at the time of collision, your vehicle may only be valued at $19,000, meaning that without insurance, you not only don’t have a car, you still owe $1,000.

With gap insurance, that extra cost is covered. While we recommend gap insurance in most cases, it’s advisable that you determine the current value of your car against what you still owe. While gap insurance is beneficial for a new model attached to a loan or lease, it may not be worth it if you have an older model you’re close to paying off.

Here at Mitsubishi Store Clarksville, we’re here to be your go-to resource for everything Mitsubishi model and service related. Visit us today at 1590 Greentree Blvd, or give us a call at 812-487-1818 with any questions you have. We’re happy to help!

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