Sometimes bad things happen to good people and great cars. Luckily, we’ve got insurance for that. And if you didn’t know, there are other ways you can supplement your basic car insurance coverage to make sure you’re prepared in the event that your beloved Chevy Malibu or other Chevrolet car is totaled.
The most common supplemental car insurance our customers get is GAP insurance or Guaranteed Auto Protection. The main purpose of GAP insurance is so that in the event your car is totally done for, you’re not stuck paying the remaining balance on a car loan for a vehicle you don’t even have anymore.
The reason why this “gap” issue happens is new car depreciation. Your vehicle loses value fast, sometimes so fast that time elapses where you owe more to the bank than what your car is currently worth. Taking into account taxes, interest, and other factors, it’s not unlikely that you could be experiencing a gap for a while until you’ve made a substantial number of payments.
GAP insurance covers that remaining amount that you’d likely owe if you make only a small down payment, have a long payment plan (5+ years), or if your car is totaled very quickly after purchase. Most insurance only reimburses for “current value,” not necessarily what you paid for the car, so GAP insurance can be super helpful.
The best thing you can do is call your insurance agent and inquire about GAP insurance because every policy is going to be slightly different. If you live near Glenview and you’re searching for a “Chevy dealership near me,” look no further. At Jennings Chevrolet, we’ve got your back. Come see us today to learn more about the car buying and ownership processes.