Is Gap Insurance a Smart Buy for Allentown-Area Drivers?

Whether you’re looking for new or pre-owned cars for sale, you won’t be disappointed with the options that are available to you at our car dealership serving Allentown, PA and nearby areas. You also won’t be disappointed with the advice we have about any number of automotive topics, including gap insurance.

Gap insurance is a type of car insurance that differs from your standard policy. Whereas your standard coverage covers a host of things, gap insurance only covers one. If your car is stolen and still missing or it’s destroyed, your standard policy will reimburse you up to the market value your vehicle had at the time of the incident. Gap insurance is designed to pay the difference between that sum and the amount you owe your lender.

Determining if gap insurance is a wise move has nothing to do with your geographic location. Instead, the decision to get or skip gap insurance depends on several other key factors, such as the size of your down payment. If you put down less than 20% of your vehicle’s purchase price, it’s typically wise to purchase gap insurance. Similarly, it’s often a good idea to get gap insurance if you financed your automobile for 60 months or longer.

If you got a car that will depreciate quickly or you’ll drive down the value of your vehicle by racking up a lot of miles every year, getting gap insurance is a prudent move. Drivers who lease an automobile are often required to carry gap insurance. If you rolled negative equity into your current auto loan, you’ll probably want to get gap insurance as well.

While gap insurance is a smart buy for some drivers, the coverage isn’t for everyone. If you own your car outright, you don’t need gap insurance.

To learn more about gap insurance, visit Scott Chevrolet to talk to the experts in our Chevy finance center near Lehigh Valley, PA.

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