Gap Insurance

Let's start with a simple definition.....
Gap Insurance is a type of auto insurance that vehicle owners can purchase to protect themselves against losses that can arise when the amount of compensation received from a total loss does not fully cover the amount the insured owes on the vehicle's financing or lease agreement. This situation arises when the balance owed on a car loan is greater than the book value of the vehicle.
Now let's look at an example....
Let's say, according to Kelley Blue Book, your car is worth $20,000. However, you still owe a total of $24,000 worth of car payments. In the event that your car is totaled as a result of an accident or theft, your car insurance policy will reimburse you with $20,000. Because you owe the company that financed your vehicle purchase $20,000 you will still be $4,000 short, even though you no longer have a car. Without GAP insurance you would be responsible for paying the finance institution that $4,000 difference.

If you purchase gap insurance, the gap insurance policy would cover the $4,000 "gap", or the difference between the money received from reimbursement and the amount still owed on the car.


Protect Your Investment

Honda of Keene's GAP insurance from Allstate offers peace of mind for your investment while often times adding a minimal amount to your monthly payment. A vehicle purchase is usually the second largest if not the largest someone will make. Why not protect it with the same way you would a home?

The Truth is often times the reason your car may be worth less than what you owe the bank can be completely out of your control. Market conditions, seasonal conditions and many other influencers determine the real time value of your vehicle.

Of course it is never anyone's intention to get in an accident or have their car stolen but things happen and often times those things are out of your control. By purchasing GAP insurance not only are you ensuring that your investment is protected from forces outside your control but you adding peace of mind. Contact us today to discuss what it would take to add GAP insurance to your current vehicle or upcoming purchase.


Make an Inquiry

Contact

Honda of Keene

567 Monadnock Highway
Directions Swanzey, NH 03446

  • Sales: 800-538-4988
  • Service: 800-538-4988
  • Parts: 800-538-4988

Covering the Difference and More!

  • Protects new and used vehicles
  • Protects vehicles valued up to $100,000
  • May cover your insurance deductible up to $1,000
  • Waives losses up to $50,000