What is GAP Insurance?

When you are finalizing the loan or lease on your new Honda car, truck or SUV, you’ll also be faced with choosing insurance coverage. One of the questions we hear most often from our Broomfield-area customers is: “What is GAP insurance?” More specifically, they ask: “What is GAP insurance on a car?” GAP Insurance is Guaranteed Asset Protection insurance, and it covers the difference between the value of the vehicle and the balance still owed on it. Learn more about Honda GAP insurance, what it covers, and how it works from the finance team here at Fisher Honda.

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What Else Does GAP Insurance Cover?

What is GAP protection? Along with covering the difference between your vehicle’s value and the amount you owe on it, GAP insurance provides coverage to protect your vehicle. It is important to note that GAP insurance doesn’t cover bodily injuries, mechanical repairs, or your deductible. What it does cover includes:

Theft
Fire
Vandalism
Accidents
Nature damages (tornado, hurricane, flood, etc.)

Regular insurance usually doesn’t cover all of these unexpected inconveniences, which is why GAP insurance can come in handy for Longmont drivers. You never know when you’re going to need it, so it’s better to be prepared.

Is GAP Insurance Worth It?

It is our opinion that Honda GAP insurance is definitely worth having. Providing protection for your vehicle investment when something out of the ordinary occurs, like the theft of your vehicle, just adds an extra level of peace-of-mind. Also, it is important to remember that your vehicle depreciates the second you drive off the lot, and having this insurance will cover the GAP between the worth of your vehicle and what your insurance will cover if you get into an accident.

How Can I Get GAP Insurance?

You can choose to get GAP insurance through your local Louisville-area dealership of choice, or from a company that deals explicitly with auto coverage. If you do decide to sign up for GAP insurance coverage, it can cost as little as $20 a year, in addition to the one-time fee at the time of purchase.

Learn More at Fisher Honda

When you’re ready to fully insure your new Honda, contact us and our finance specialists will be happy to assist you. Check out our Financing FAQs, and learn about the benefits of leasing to find out whether a Honda lease is a better fit with your budget. We can also explain the difference between bank vs. dealership car loans so you can make an informed choice. When you’re ready, apply for financing with us online and get pre-approved for a low-interest loan from the comfort of your home or office. We want to but you behind the wheel of an exciting new Honda today!