Imagine driving your brand-new car off the lot, only to have it totaled weeks later. Standard insurance won’t cover what you owe. Fortunately, gap insurance acts as a safety net. Serving Denver, CO, and the surrounding areas, AFI Insurance offers comprehensive auto coverage that helps protect drivers from these unforeseen events.
What Is Gap Insurance?
Gap insurance covers the difference between your car’s current value and what you still owe on your loan or lease. For example, if your vehicle is worth $20,000 but you owe $25,000, gap insurance covers the $5,000 “gap” after a total loss.
When Do You Need Gap Insurance?
Gap insurance can be a smart investment if you made a small down payment, leased your vehicle, or have a long-term loan. It’s also recommended if your vehicle depreciates quickly or you rack up high mileage.
When You Might Not Need Gap Insurance
You may not need gap insurance if your vehicle is paid off or nearly paid off. It also may not be necessary if you made a sizeable down payment, have a short-term loan, or bought a used car that holds its value well. In these cases, the risk of a financial gap is low.
Key Advantages of Gap Insurance
Gap insurance offers assurance if your car is stolen or totaled, ensuring that you’re not stuck with loan payments on a vehicle you no longer have. It helps protect your credit and finances, and because of the coverage it provides, it can be very affordable when bundled with your auto policy.
Contact AFI Insurance in Denver, CO
Gap insurance can be a financial lifesaver by preventing major debt after a catastrophe. To learn more or to discuss your coverage needs, contact us today at 303-433-8888.
