What is Gap Insurance?

When you buy a new car in the Brooklyn area, you’ll be presented with various insurance options. One of the optional forms of insurance you can choose is called gap insurance. If you haven’t heard this term before, you may be wondering: what does gap insurance do? What does gap insurance cover? The short answer is, it’s a form of insurance designed to cover the gap between the amount owed on your car and the cash value of the car at the time of an accident. The finance team at Bay Ridge Mazda has everything you need to know about gap insurance in the guide below, so check it out!

What Does Gap Insurance Cover?

What does gap insurance cover? Gap insurance is designed to cover damage related to your vehicle – keep in mind that it does not cover bodily injuries or property damage caused by an accident. What does gap insurance do? Here’s exactly what gap insurance does and doesn’t cover:

Gap Insurance Covers:

• Theft
• Fire
• Vandalism
• Accident
• Acts of nature (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

Gap insurance is meant to cover total loss in case of an accident. It’s an optional form of coverage but still worth discussing with your insurance company if you’re interested.

Do I Need Gap Insurance?

The answer? No. That being said, gap insurance is a great addition if you’re going over your financing and insurance options when shopping for a new car around Staten Island. If your dealership offers deductible coverage, gap insurance is a particularly helpful option. Having gap insurance covering your Mazda will give you peace of mind in case of an accident, and help you save money at the same time.

Explore All Insurance and Finance Options at Bay Ridge Mazda

It’s important to have as much information as possible before starting the financing process. If you’re interested in learning more about your insurance and financing options, contact our office near Queens anytime! You can also apply for financing from our website if you’re looking to start the process of bringing a Mazda home for yourself.