At Lester Glenn Mazda, we are always looking for ways to make your buying or leasing experience a smooth, memorable event. Our staff is available to go over each model with you when you take a test drive, and our Mazda finance team is here to discuss the details of your loan or lease agreement. If you would like to know a little bit more about gap insurance and how it all works, we have put together some information that dives a bit deeper into the benefits.
Understanding Gap Insurance
When it comes to guaranteed asset protection or gap insurance, this kind of coverage works as a sort of buffer when a driver owes more on their vehicle than it is worth. If your car is stolen or you are in an accident where it is deemed a total loss, you will only get the fair market value from your insurance company. Gap insurance is there to take up the slack between the amount that you owe on the vehicle and the amount your insurance company gives you. Without gap insurance, you will be responsible for paying off the loan on a vehicle that is no longer drivable.
Who Needs Gap Insurance?
If you are leasing, there might be a stipulation in your lease agreement that requires you have gap insurance. Besides that, anyone who owes more for their vehicle than the fair market value price should have gap insurance coverage. The cost equals out to a few extra dollars a month that can be rolled into your monthly loan payments. You also have the ability to cancel the coverage once you no longer need it.
1408 Route 9 in Toms River, NJ is where you will find Lester Glenn Mazda. Whether you want to buy or lease a new Mazda CX-3 or another model, we are here to help!