There are lots of perks to buying a pre-owned Mercedes-Benz car at Mercedes-Benz of Silver Spring. Thinking skipping GAP insurance is one of them? Not so fast! You may still want to consider protecting yourself with the extra coverage.
If I Already Have Insurance, Do I Need GAP Insurance?
Auto insurance is designed to help you cover the costs of repairs and replacements if you are involved in an accident or your vehicle is damaged. However, when your vehicle is damaged, your insurance company will assess your damages and estimate the cost to repair or replace your vehicle.
If your vehicle is totaled, they will give you a check for the estimated value of your vehicle at that time, no matter how much you may still owe.
What is GAP Insurance?
The GAP acronym stands for Guaranteed Asset Protection. This is automobile coverage that is designed to protect car owners in the event they have a total loss, whether they are involved in a collision, or their vehicle is lost or stolen.
GAP insurance will cover the difference between the amount your insurance company gives you and the amount that you still owe on your loan.
Instances You May Want GAP Insurance
Naturally, buying GAP insurance is a personal preference and a choice that only you can make. However, there are some instances where we strongly recommend it.
Consider GAP insurance if you:
- Are buying a late-model pre-owned car
- Are making a minimal or no down payment
- Have a lengthy loan term
- Would be financially strapped if you were involved in an accident
Still have questions? Visit our Mercedes-Benz finance center in Silver Spring, MD to chat with our team about your options today!
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