If you’re planning to buy a pre-owned Mercedes-Benz vehicle, there are several financial aspects to think about. One that you don’t want to forget about is Guaranteed Asset Protection insurance – also known as GAP insurance. This guide goes over what this is and when you need it.
What is GAP Insurance?
GAP insurance provides essential financial coverage for your car. If you intend to put up all the money you need for your vehicle immediately, you won’t need GAP insurance.
However, if you plan to finance, this is vital, as it protects you in the event that it is stolen and never recovered or totaled in an accident.
How Does GAP Insurance Work?
If your car is stolen or wrecked and you own money on it, you’ll be glad that you have GAP insurance.
Let’s say you get into an accident and the car is a total loss. When you file a claim with your insurance company, they tell you that your car is worth $12,000, so they send you a check for that amount.
That may sound good, but what if you’re still paying off the vehicle and you owe $15,000? Where does that extra $3,000 come from? If you don’t have GAP insurance, it will have to come right from your pocket.
Getting GAP Insurance
When buying a car, GAP insurance is generally optional but, as you can see, it’s well worth the investment. If you decide to lease instead, this will almost certainly be included in the lease agreement.
Learn More About GAP Insurance
Any questions about GAP insurance? Get in touch with Mercedes-Benz of Wilkes-Barre to get the answers you need.
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