Once you’ve bought a car here at Acura of Peabody, you need insurance. There are many choices to sort through and additional coverage options to consider, but how do you know what you need? One particular type of coverage we’ve been asked about is gap insurance, and we can help you try and figure out whether or not it’s a good fit for you and your vehicle.
If you get into an accident where your car is totaled, your insurance company will pay you what the car is worth. Basically, if you have coverage you’ll be able to replace your totaled vehicle with a new Acura model of similar cost. This gets more complicated if you’re leasing your vehicle or have a loan out on it though.
That’s where gap insurance comes in. It’s primarily designed to protect the assets of your lender and ensures that you won’t end up owing money on a car you can’t even drive anymore. You’ll have to cover this gap between the worth of the car and how much you owe on it all on your own, which can add financial stress after an accident.
To determine whether you need gap insurance, you need to see whether you owe more money on your car than it’s currently worth. Vehicles start to lose value as soon as they leave the lot, so it might be smart to carry this coverage at least through the first few years of your loan. If you’re leasing, you might already be required to have gap insurance. If it’s not required, it might still be a good idea to get it.
So visit our Acura dealership serving Greater Boston and find the perfect luxury car today. Whether you have questions about insurance or the latest in-car technology, our knowledgeable Acura dealers are ready to help. We hope to see you soon for a test drive!