How Does Gap Insurance Work?

When the unexpected happens, GAP insurance has you covered!

Let’s say you recently purchased a new Honda. After driving it for a little while, you hypothetically owe $28,000 on the loan, but, because of depreciation, your vehicle’s Actual Cash Value is $22,000.

If your vehicle was in an accident and was totaled, your insurance company would payout your vehicle’s Actual Cash Value of $22,000. Putting that payout towards the loan would not cover the entire loan amount.

You would have to pay an additional $6,000 to pay off the loan. GAP insurance would cover that $6,000 difference.

Can I get GAP insurance if I leased my vehicle?

Absolutely! Not only can you get GAP insurance – we recommend it. GAP insurance would cover the difference in your vehicle’s value and the remaining amount owed on the lease.

Does it only cover total loss accidents?

GAP insurance would also cover the difference in your vehicle’s value and the remaining amount owed if your vehicle were to be stolen.

Do I get any more perks with Vern Eide GAP insurance policies?

Yes! Vern Eide GAP insurance policies also include deductible coverage – which would pay up to $1,000 of your insurance company’s deductible.