What Does Gap Insurance Cover?

Whether you finance or lease one of our Lexus models, you will have protection if damage occurs to your sedan or SUV with gap insurance. You can read about this coverage below, then contact Pohanka Lexus if a question or two arises. We would love to assist you!

What Is Gap Insurance?

If you end up in a collision or your car suffers harm from natural disasters and cannot be fixed, then it is beneficial to have gap insurance. In this case, the coverage helps to pay off the worth of the car and what you still owe for the lease or finance loan. Rather than having to contribute this difference out of pocket, the insurance helps you save. It also works in tandem with your original auto coverage and can prevent you from going into other financial issues if your vehicle does end up with a completely totaled loss. While this insurance is typically an add-on option, it can greatly assist you in unfortunate circumstances. 

Gap Insurance Coverage

As mentioned, gap insurance comes in handy to pay off the difference  of the car’s value and the balance of your loan or lease, but there are times when it may not cover costs. For example, if you have any extra charges on your loan or you happen to go over the mileage at the end of a leasing contract, you will be responsible for these. Along with that, it cannot be used toward any missed monthly payments or if the vehicle gets appraised and is not considered a total loss. However, you might consider purchasing it in certain situations to assist you. If you are planning on perhaps financing your vehicle for a long term or if you dedicate less than 20 percent for a down payment on a new model, it may be wise to go with gap insurance.

Visit Our Finance Department

When you stop by our Finance Department, we can assist you even further. We will talk about which warranties come with the vehicle that you want to make yours, whether temporarily or permanently. If you are thinking about purchasing gap insurance, we would be happy to chat about the terms and which option is best for you. We strive for a stress-free environment at Pohanka Lexus and want you to leave our doors with a smile on your face. It doesn’t matter if you’ve had this type of coverage before or this might be your first time, our team will explain its benefits to you and in the end, it is still ultimately your choice whether you decide to opt for it or not.