GAP Insurance Coverage on Your New Honda from Serra Honda Grandville
GAP insurance may seem like an unnecessary expense, until you really need it. There is a time period when you buy a new vehicle and drive it off the lot where the value of the vehicle depreciates quickly, but the insurance is designed to cover the current cash value of the car not the loan amount. What does this mean for owners? In the early stages of owning a vehicle the amount you have financed may not be the actual cash value of the vehicle right after it is driven off the lot due to the immediate depreciation. This means if an accident were to occur there is a difference in what is covered by insurance and what is still owed on the vehicle, which is where GAP insurance comes in.
