What Does Gap Insurance Do?

Now that you have purchased a new or pre-owned vehicle from Cornerstone Kia, you are beyond thrilled to commute in it every day. But to keep enjoying your car on the Minneapolis roads, you should consider looking into protection options, such as gap insurance. What does gap insurance do? It covers the difference between the outstanding balance of your car and the true cash value at the time of the accident. Keep on reading to find out more from our finance experts. 

What Does Gap Insurance Cover?

So what does gap insurance cover exactly? It is meant to cover only the damage to your car in the case an accident happens. See what gap insurance covers and not below. 

Gap Insurance Covers:

• Theft
• Fire
• Vandalism
• Accidents
• Natural disasters (tornado, hurricane, flood, etc.)

Gap Insurance Does NOT Cover:

• Deductible (though some gap insurance policies allow this)
• Engine failures and other mechanical repairs/malfunctions
• Death
• Extended warranties

The most important part of answering “What does gap insurance do?” is that this coverage is for total loss resulting from an accident. While it is optional, you may find it beneficial, so it never hurts to talk to your insurance company about it.

Do I Need Gap Insurance?

Now that you know what gap insurance does, you might be wondering if you need gap insurance. You don’t, but you should consider it closely if you bought a new car and are going through the various insurance plans and financing options. For example, if the Maple Grove dealership you purchase your car from offers deductible coverage on a plan, gap insurance can come in handy. If you want to discuss the need for this insurance, feel free to reach out to our finance team. 

Learn More About Auto Insurance at Cornerstone Kia

While it is wiser to know what auto insurance you should get before buying a car, it doesn’t hurt to look into your options afterward as well. When you opt for the proper coverage for your situation, it can save you money and headache should any accidents happen near Andover. Learn more about insurance from our team at Cornerstone Kia! If you’re looking for coverage in Elk River, you can contact us to get started.