How Does Gap Insurance Work?
The experienced team here at Ole Ben Franklin Motors, with four car dealership locations in the Knoxville, Tennessee area, wants to help you learn how gap insurance works.
Protect Your Investment and Stay Ahead of the Game with Gap Insurance
Are you in the process of buying a new car and looking for ways to protect your investment in case of an unexpected event such as an accident or theft? If so, you may want to consider Gap insurance. But what exactly is Gap insurance and why do you need it?
Gap insurance is a type of car insurance that protects you in the event of a total loss. It covers the difference between the actual cash value of your car and the amount you still owe on your car loan. Essentially, it covers the “gap” between what your insurance pays and what you owe on your car loan.
Let’s say you finance a new car for $20,000 and after a few years of ownership, it’s worth only $15,000 due to depreciation. If your car is stolen or involved in an accident, your standard auto insurance policy will typically pay out the actual cash value of the vehicle, which in this case is $15,000.
But if you still owe $18,000 on your car loan, you’ll be responsible for paying the remaining $3,000 out of pocket. This is where Gap insurance comes in. It covers the difference between what your insurance pays and what you owe, so you won’t be stuck with an unexpected bill.
Why Do You Need Gap Insurance?
Gap insurance is particularly important if you’re financing a car, as you’re likely to owe more on it than it’s worth. This is due to depreciation, which is the gradual decrease in your car’s value over time. Your car’s value decreases as soon as you drive it off the lot, and by the time you’ve made your last payment, it could be worth much less than you owe. In case of a total loss, Gap insurance ensures that you’re not left responsible for the remaining balance on your car loan.
Guaranteed Credit Approval and One Dime Down at Ole Ben Franklin Motors
At Ole Ben Franklin Motors, we understand the importance of protecting your investment and ensuring your financial security. That’s why we offer Gap insurance coverage to all our customers. Our knowledgeable and experienced team is here to help you choose the right coverage for your specific needs and budget.
In addition to Gap insurance, we also offer guaranteed credit approval, so you can drive away with a new car even if you have a poor credit history. Our One Dime Down program allows anyone to buy a car with just a 10-cent down payment, making car ownership a reality for everyone.
Don’t Wait Until It’s Too Late
Don’t wait until it’s too late to protect your investment. Contact Ole Ben Franklin Motors in Knoxville, TN to learn more about Gap insurance and how it can benefit you. We’d love to help you find coverage that fits your needs and budget. And if you have any questions or concerns, our friendly and knowledgeable team is here to assist you every step of the way.
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