If you're almost finalizing the purchase of your next vehicle near South Elgin or you have recently bought one, you might be looking into auto insurance and have probably come across gap insurance. So what is gap protection and is it worth it? Gap insurance on a car covers the difference between the car's current worth and outstanding balance at the time of an accident. Find out more about this type of auto coverage and see if it is worth it for you personally below with the finance experts from Elgin CDJR!

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What is Gap Insurance On A Car? 

Gap insurance (aka Guaranteed Asset Protection) covers the difference between the current value of your Bartlett ride and the amount you still owe on it. This insurance is for cars that have a current lease or loan. Should your car ever gets damaged in a natural disaster or an accident in the Bartlett area, gap insurance will come in handy and will cover the following: 

  • Theft
  • Fire
  • Vandalism
  • Accident
  • Natural disasters (i.e. tornado, hurricane, flood)

However, keep in mind, it doesn't cover any bodily injury or property. If you're looking for insurance that protects you when you have caused damage to another party, you will need to look at options like liability coverage. 

Do I Need Gap Insurance?

Now that you know what gap protection is, you might be questioning if you need this plan. You might find gap insurance to be beneficial because of the following: 

  • The value of your car depreciates the second you drive off the dealership lot.
  • Accidents can happen whenever and is often unpredictable. With that said, they can spring up on you when you don't have extra savings to cover those costs.
  • Most insurance companies will only cover what your vehicle is worth at the time of the accident, leaving that "gap" for you to fill. However, if you have gap insurance, you won't have to worry about that gap. 
  • If your new vehicle is totaled or stolen and you owe more than its current worth, gap insurance will cover that difference! 
  • Gap insurance is an insurance coverage plan on the cheaper side. Not to mention, it is also easy to get from your local insurers. 

How Do I Get Gap Insurance?

In the Chicagoland area, you can get gap insurance in several ways:

  • Streamwood auto insurance companies may offer gap insurance for as low as $20 per year.
  • Some dealerships or car-loan companies may offer gap insurance as well as other vehicle insurance coverage. 
  • Specialized car insurance companies will offer gap insurance for a one-time fee.

Learn More About Auto Insurance Near Elgin 

If you have any questions about what gap insurance on a car is, feel free to contact us! After learning what gap protection is, you should learn about other auto insurance options out there before deciding which ones to get. Keep your car up and running and protect yourself from costly payments and headaches when accidents do happen!