GAP Insurance and Extended Warranty: A Sensible Choice?
It may seem obvious that auto insurance makes sense to stay protected financially while driving a car. Unfortunately, when a car is totaled, typical collision coverage does not provide a guaranteed payout for the full amount of your vehicle. That’s where GAP insurance comes in. GAP (Guaranteed Asset Protection) insurance is an additional coverage option that bridges the “gap” between what you owe remaining on your car loan and your collision coverage pay out. An extended warranty protects your car when something other than an accident necessitates auto repairs. At Superior Insurance – Travis McCray Agency, our agents can evaluate your finances and your budget to determine how and for how much gap insurance or an extended warranty may benefit you. Contact us in Charlotte, Greenville, Concord, or nearby NC neighborhoods to see your options.
Do I Need GAP Insurance?
Like most types of insurance policies, GAP insurance is not right for everyone. However, for some people, it can save thousands of dollars in disparity between an auto insurance payout and the remaining bill on a car loan. This type of policy may make sense for you if you pay for collision coverage and:
- You are purchasing or leasing a vehicle and especially if you put little or no money down on your loan.
- Your vehicle has significant value.
- You have minimal savings to make up the difference between what you owe on your auto loan and what your collision policy would pay out if your car is totaled or stolen.
- Your car has depreciated in value faster than your loan is being paid off.
We offer competitive rates, often with better coverage, than GAP coverage offered through a dealership. Our local agents can find policies with affordable premiums as low as just a few dollars a month in some cases. It is important to note that once the amount you owe on your vehicle meets or falls below the commercial value of your vehicle, you may be able to drop your GAP insurance policy.
Do I Need an Extended Warranty (Service Contract)?
If you have purchased a car or other automobile, you know that dealerships are eager to sell you warranties of all shapes and sizes. While most new and some used cars come standard with a bumper to bumper warranty, these usually expire when you reach a certain mileage or own your car for a certain period. An extended warranty, or service contract, helps pay for planned and unplanned car expenses into the future. At Superior Insurance – Travis McCray Agency, we can add on a service warranty to your existing auto insurance policy to keep your vehicle protected, often at better rates than a dealership.
Additional Coverage Can Make All the Difference
If you drive a vehicle, it is important that you know all your options when it comes to auto insurance. The agents at Superior Insurance – Travis McCray Agency can set you up with an auto insurance policy and help you explore additional coverage like GAP insurance and extended warranty. If you live in Charlotte, Greenville, Concord, or elsewhere in North Carolina, contact us for a free quote today.