Why You Might Consider Gap Insurance

Gap insurance is a kind of supplemental car insurance that can really come in handy when you’re in a bind. Contact us today to see if it’s the right option for you based on your standard coverage and other factors. In the meantime, here’s the basic rundown of gap insurance.

We hate thinking about that worst-case-scenario, but we want you to be prepared in the event that something happens to your vehicle and it’s no longer driveable. Essentially, gap insurance (Guaranteed Auto Protection) covers the gap left when you’ve totaled a vehicle that you are upside down on financially. The term upside down refers to when someone owes more on their vehicle than it’s currently worth.

Believe it or not, this kind of thing is common because vehicles, even Hyundai cars, depreciate so quickly (as soon as you drive off our lot near Edison, NJ.) When you account for interest, taxes, and other fees, it’s possible you’ll owe the bank more than what your vehicle is worth until you’ve made a few years of payments. This can also happen if you’ve made a small down payment or you’ve chosen a long payment plan like five or more years.

Where gap insurance comes into play is simple. It covers the difference between what you owe to the financial institution and what your insurance is willing to pay out (typically based on the current value of your car). This way, you’re not on the hook when it comes to paying the bank extra money for a vehicle you don’t even have anymore.

We hope we’ve cleared any confusion surrounding this type of coverage, but feel free to contact our Hyundai dealers serving Staten Island, NY with any questions. To find us, type in “Hyundai car dealership near me,” and follow the directions to Sansone Hyundai! Come see us today.

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