What Does Gap Insurance Cover?

When buying a new car in Tempe, there are multiple options for financing or insuring your purchase. Among the various insurance options you can choose from is gap insurance. Yet, what does gap insurance cover?

In the simplest of terms, it’s designed to cover the gap between your car’s owed amount and its true cash value if you get into an accident. Bill Luke Tempe is here to answer all the questions our Phoenix customers have. In the following guide, we’ll explore the question, “What does gap insurance cover?” and spotlight how it can benefit your needs.

What Does Gap Insurance Do?

Gap insurance tackles a multitude of aspects surrounding your vehicle. One aspect that many Chandler drivers is that it’s meant to tackle vehicle damage only, not bodily or property injuries. Below is a list of what does gap insurance cover and what it doesn’t:

Gap Insurance Covers

• Theft
• Fire
• Vandalism
• Accident
• Acts of nature (tornado, hurricane, flood, etc.)

Gap Insurance WILL NOT COVER

• Deductible (Some gap insurance policies will allow this)
• Engine failures and other mechanical repairs/malfunctions
• Death
• Extended warranties

When answering, “What does gap insurance do?” it’s important to remember that its primary function is to cover total loss in an accident. While this coverage is optional, it’s worth speaking with your insurance provider about its benefits.

Do I Need Gap Insurance?

Now that you know what gap insurance does, it’s important to wonder if it’s the right option for your needs. Not every Queen Creek area driver will need gap insurance. However, it’s important to remember you have the choice when considering your various financing and insurance options.

Many Tempe drivers choose gap insurance if their dealership offers a plan featuring deductible coverage. Having this insurance option can offer peace of mind and help save money if an accident occurs. If you have any questions, our finance team is only a call away at (623) 352-0911.

Explore All Insurance and Finance Options at Bill Luke Tempe

Now that you have an answer to “What does gap insurance do?” there’s one dealership near Phoenix to choose from. At Bill Luke Tempe, our finance team wants to make your car-buying process as straightforward as possible.

In addition to our financing options, you can use our tools, including the online payment calculator and vehicle finder service to reduce the stressors some might encounter. Find the perfect car in Tempe with Bill Luke Tempe!