Did you know that your new car, truck, or SUV loses value as soon as you drive it off of the lot? That’s correct. In the first year alone, your vehicle will on average depreciate in value by up to 20 percent. That’s why Monroe Superstore encourages drivers to consider getting gap insurance, which stands for “guaranteed asset protection.”
What Is Gap Insurance?
In the event that your vehicle is declared a total loss of claim, either from theft or an accident, gap insurance will pay the difference between what it is worth and what you still owe on it at the time.
You may want to consider getting gap insurance if
- You leased a vehicle
- You made a small down payment on a new car (less than 20 percent), or none at all
- You bought a new vehicle that depreciates faster than average
- You agreed to a loan that lasts longer than 60 months
- You rolled over an old car loan into the new loan
The Benefits of Gap Insurance
There are many perks to getting gap insurance for your Jeep Cherokee or RAM 1500 near Ann Arbor, MI at our Chrysler dealership. Not only does it cost very little and provides tons of advantages, but it may also help your lender accept a lower down payment when you decide to purchase a new vehicle.
Understanding the different types of insurances that you need can be confusing, but gap insurance is definitely worth the investment. You never know what can happen, and it’s always best to be proactive. Contact us at Monroe Superstore, your trusted MI car dealership for new and used vehicles for sale, to learn more about gap insurance and if it makes sense for you to purchase it.