One of the biggest questions that some drivers have when buying a pre-owned Acura car here at Hall Acura Virginia Beach is whether or not to get GAP insurance. The answer to this question depends on your individual situation and your wants and needs when purchasing a car. Our team of Acura finance experts is happy to provide guidance.
What is GAP Insurance?
GAP insurance, also known as Guaranteed Asset Protection, is an insurance coverage option that fills the gap between the actual value of your Acura car and the amount that you owe on your vehicle. In the unfortunate event of a total loss, such as theft or an accident, standard insurance may only cover the current market value of your car. In this case, you may be responsible for the remaining balance, which GAP insurance helps cover.
The Value of GAP Insurance
If you’re buying a pre-owned Acura car, you may be wondering if GAP insurance is necessary. The answer depends on a number of factors, including:
- The car’s deprecation rate
- Financing terms
- The down payment
When to Purchase GAP Insurance
- High Depreciation Periods: In the initial years of ownership, vehicles typically experience faster depreciation. GAP insurance is useful during this time.
- Limited Down Payment: You may want GAP insurance if you made a down payment of less than 20 percent of the vehicle’s value.
- Long Financing Term: GAP insurance is a good idea if your financing term is 48 months or more.
Learn More at Hall Acura Virginia Beach
For more advice on whether or not GAP insurance is a good idea in your particular situation, speak to the friendly team here at Hall Acura Virginia Beach. We’re happy to help while you browse our large pre-owned Acura selection.
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Pre-Owned Inventory
