What is Gap Insurance?

Filling out application concept with messy desk
When you buy a new car from Sid Dillon Auto Group, you’ll not only have to settle on your financing package, you’ll also need to decide on what kind of  insurance coverage you want. There are many insurance options to consider, one of which is gap insurance. So, what exactly is gap insurance? To state it simply, gap insurance covers the gap between what is owed on the car and what its true value is at the time of an accident. Learn more about gap insurance to find out how it can benefit you in this guide from your local Lincoln area Sid Dillon dealerships.

What Does Gap Insurance Cover?

The main thing that you need to understand about gap insurance is that it only covers damage to your vehicle, and not any property or bodily injuries. Here’s what gap insurance covers and what it 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

When asking ‘What does gap insurance do?’ The answer is that it covers you in the event that your vehicle is totaled in an accident.

Do I Need Gap Insurance?

Unlike liability insurance, which is required by law in most states, gap insurance is an optional coverage. But we recommend that you consult with your insurance company to learn more about what it can offer you. Gap insurance can be especially beneficial if the car you purchase includes deductible coverage, as it will help you save money if your vehicle is damaged in an accident. At the Sid Dillon dealership near you our finance specialists will be happy to answer any questions you have, and fill you in on all the details regarding gap insurance.

Explore Your Insurance and Finance Options at Sid Dillon Auto Group

Whether you’re shopping for a new or used vehicle, it’s important to know about the available insurance options. Your local Sid Dillon dealership wants you to have the proper insurance coverage when you’re driving out to enjoy all the things to do in Lincoln. Learn more about our dealership financing, and if you have any questions, or would like more information, please feel free to contact us.