What Does Gap Insurance Do?

Insurance Paperwork

When you buy a new car from Tom Peacock Nissan, you’ll have to look over various options for financing and insuring your car. One of the many optional insurance coverages you can opt for is gap insurance, but what does gap insurance do? Well, gap insurance is designed to cover the gap between the owed amount on the car and the true cash value of the car at the time of an accident. Learn more about exactly what this insurance covers and how it can protect you on your Conroe area drives from the Tom Peacock Nissan finance team.

What Does Gap Insurance Cover?

There are a variety of issues that gap insurance covers. Of course, Tomball drivers should still keep in mind that gap insurance is meant to cover damage to your vehicle, not damage to property or bodily injuries. We’ve listed what gap insurance does, and does not, cover here for you:

Gap Insurance Covers:

  • Theft
  • Fire
  • Vandalism
  • Accident
  • Acts of nature (tornado, hurricane, flood, etc.)

Gap Insurance Does NOT Cover:

  • Deductible (though some gap insurance policies allow this)
  • Engine failures and other mechanical repairs/malfunctions
  • Death
  • Extended warranties

The main answer to the question, “What does gap insurance cover?”, is that it will cover the total loss of your vehicle in the event of an accident. Gap insurance is an optional coverage, but it can be a life-saver if your vehicle is totaled.

Do I Need Gap Insurance?

Gap insurance is not by any means mandatory or even needed, but it is highly recommended. If your dealership offers a plan that includes deductible coverage, gap insurance is especially helpful. Gap insurance can also give you peace of mind and will save money in the event of an accident in the Spring area.

Explore Your Finance Options at Tom Peacock Nissan

We’ve answered “What does gap insurance do?”, but do you still have questions about gap insurance? Contact us, and we’ll be happy to help! When you’re looking to purchase a new vehicle, it always helps to have in-depth knowledge of various insurance plans so that you understand exactly what you need and want before purchasing a car.

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