What is GAP Insurance?

At Mercedes-Benz of Laguna Niguel, we often go over different auto insurance options when going through the car-buying process with Orange County area drivers. One of the most common questions we field in our finance center is, “What is GAP insurance on a car?” GAP is an acronym for guaranteed asset protection, which covers the difference between the value of your car and the amount you still owe on it. You can see GAP insurance as covering the gap between what your car is worth and what you owe. Let’s explore some of the other ways GAP protection helps San Clemente and Aliso Viejo drivers protect their investment, and once you’ve finished reading, you can contact us online at Mercedes-Benz of Laguna Niguel to learn more about the finance and insurance side of the car-buying process.

What is GAP Protection Good For?

So, what is GAP protection good for if you already have car insurance? Well, while it doesn’t provide auto collision, auto repair, or bodily harm coverage, it comes in handy for uncommon but costly events, such as:

• Auto theft
• Fire
• Natural disasters
• Accidental property damage

It’s easy to see GAP insurance as nonessential until your car falls prey to an unexpected hail storm and your liability insurance leaves you footing the bill. So, it’s much better to have GAP insurance and never need it than to need it and not have it.

How Can I Get GAP Insurance?

By now, you can see that if someone asks you, “What is GAP insurance,” the best answer to give them is it’s necessary. So, where can you purchase it? Oftentimes, you can get it when you purchase insurance for your car at the dealership. Our finance specialists at Mercedes-Benz of Laguna Niguel are likely to ask if you would like to protect your investment further by adding GAP insurance. The great news is that GAP insurance is inexpensive, costing as little as $20 per year in addition to the one-time upfront purchase fee.

Learn More at Mercedes-Benz of Laguna Niguel

If you would like to learn more about different insurance options and other ways to protect your investment, contact the Mercedes-Benz of Laguna Niguel finance center where our professional and courteous staff are readily available to answer your questions. And, if you’re ready to take to the San Juan Capistrano streets in a new vehicle, you can apply for financing online and get pre-approved in minutes! At Mercedes-Benz of Laguna Niguel, we have your back through every step of the car-buying process and every mile of the road when you become a member of the Mercedes-Benz of Laguna Niguel family.