Buying a new vehicle is a major financial decision. While you may be more than prepared for your payments, are you prepared for the unexpected? What if you were involved in an accident? No problem, you’d call your insurance company, right? But what if you owe more on your car than it’s worth? Not so fast. That answer isn’t as simple.
Did you know that your auto insurance only covers the value of your car and not the cost of your car? Therefore, if it’s determined your car is worth less than you owe on it, you are left to cover the difference, because you are always responsible for your total loan, whether you still have the car or not. Enter: gap insurance.
Gap insurance refers to guaranteed asset protection insurance. Gap insurance helps cover the difference of your total loan and the check you received from your insurance company. That way, you can have a little peace of mind knowing you’re protected.
Not everyone needs gap insurance, however. Typically, it’s recommended for buyers who have a higher chance of becoming upside down in their loan. For example, if you make a down payment that is less than twenty percent or you have an extended loan term (typically six or seven years), it’s more likely that you need gap insurance. It’s also a good idea for more expensive vehicles. It’s best to discuss with our Dodge finance center to weigh your options.
Our Dodge dealership near Wilmington, DE can not only help you find the perfect vehicle, but we can also help make sure you feel confident – and protected – in your car-buying decision. Visit us today for a test drive – and a little peace of mind.