What is Gap Insurance?

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No matter if you’re buying a new vehicle or a pre-owned model from our online inventory, you’ll want to look over the various insurance coverage options we have to offer. Of the many optional insurance coverages you can opt for, there is gap insurance. So, what does gap insurance do? Gap insurance is designed to cover the gap between the amount owed on the vehicle and the true cash value of the car at the time of an accident. So, what does gap insurance cover and how can it benefit you? Learn more with the Lexus of Cherry Hill finance team.

What Does Gap Insurance Cover?

Gap insurance is meant to cover damage to your vehicle, not property or bodily injuries. With that, here’s a list of what gap insurance does and does not 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

What does gap insurance do? Overall, gap insurance covers the total loss in the event of an accident on Moorestown roads or beyond. While this coverage is optional, it’s worth considering and talking to your insurance company about it.

Do I Need Gap Insurance?

No. Gap insurance is optional but highly recommended when purchasing a new car. This can be especially helpful if your dealership offers a plan that includes deductible coverage. In the end, this coverage can help you save money and gain peace of mind. Still not sure about gap insurance? Our finance team can talk you through your options in Mt. Laurel.

Explore All Insurance & Finance Options at Lexus of Cherry Hill

Whether you’re just starting to look or you’re ready to purchase a new vehicle today, it’s beneficial to know about the insurance options available to you. The right coverage will save you money and stress should you get in an accident. Learn more about your options, save more with our new vehicle specials, and apply for financing online once you find the right model for you and your driving needs. Contact us in the meantime with any questions.

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