What Is Gap Insurance?

At Fresno Chrysler Dodge Jeep® RAM, we offer a wide selection of new Chrysler, Jeep, Dodge, and RAM vehicles, along with an inventory of used cars for sale near Madera. One of the many services we recommend our customers is gap insurance. Do you know what this means?

Gap insurance stands for guaranteed auto protection, and in many ways, that is exactly what it is. Typically, gap insurance comes in handy when you total a car. If you don’t have gap insurance, you could end up having to pay for the remainder of that car’s financing, even if there is no car left. Those without gap insurance who have totaled their car are often left to pay two car payments: one on a new auto loan, and another on the auto loan of a car that can no longer be driven.

That said, gap insurance only covers a limited range of car-related accidents. For instance, it won’t cover deductible costs, engine failure, or death. On the other hand, gap insurance will cover car theft, which means that if your car is stolen, you won’t be left having to pay for it. This type of insurance can save you from the financial damages of losing a vehicle and can help you get behind the wheel of another in no time.

At Fresno Chrysler Jeep Dodge RAM, we recommend that our customers opt for gap insurance if they fall into one of the following categories

• Made less than a 20-percent down payment
• Financed the vehicle for more than 60 months
• Leased the vehicle (this is often required)
• Rolled over negative equity from a previous car loan

Not only does gap insurance help protect you from the potential financial damages of losing a vehicle, but it will also give you peace of mind while you’re out on the road. Visit our Fresno car dealer ship today and learn more about how gap insurance can benefit you.