How much is gap insurance through dealership?
**The cost of gap insurance through a dealership can vary, but on average, it typically ranges from $500 to $1,000.**
When you are purchasing a new or used car from a dealership, they may offer you gap insurance as an add-on option. Gap insurance, also known as guaranteed asset protection insurance, covers the difference between what you owe on your car loan and the actual cash value of your car if it is totaled or stolen.
FAQs on Gap Insurance through Dealership:
1. What is gap insurance?
Gap insurance is a type of insurance that covers the difference between what you owe on your car loan and the actual cash value of your car if it is totaled or stolen.
2. Do I need gap insurance?
If you are financing a new or used car and owe more on your car loan than the actual cash value of your car, gap insurance can be beneficial to have.
3. Can I purchase gap insurance from a dealership?
Yes, many dealerships offer gap insurance as an add-on option when you are purchasing a new or used car.
4. Is gap insurance required by law?
Gap insurance is not required by law, but it may be required by your lender if you are financing a car.
5. Can I purchase gap insurance from my insurance company?
Yes, many insurance companies offer gap insurance as an optional coverage that you can add to your auto insurance policy.
6. How does the cost of gap insurance through a dealership compare to other providers?
The cost of gap insurance through a dealership can sometimes be higher than purchasing it through your insurance company or a third-party provider.
7. Can I negotiate the cost of gap insurance with the dealership?
Yes, you may be able to negotiate the cost of gap insurance with the dealership, just like you would negotiate the price of the car itself.
8. Is it better to purchase gap insurance through a dealership or my insurance company?
It is recommended to compare quotes from both the dealership and your insurance company to determine which option offers the best coverage and price for you.
9. How long does gap insurance coverage last?
Gap insurance coverage typically lasts for the duration of your car loan or lease, which is usually between three to five years.
10. Can I cancel gap insurance if I no longer need it?
If you pay off your car loan early or no longer owe more on your loan than the actual cash value of your car, you may be able to cancel your gap insurance.
11. Can gap insurance be transferred to a new vehicle?
Gap insurance is usually tied to a specific vehicle, so it cannot be transferred to a new vehicle. You would need to purchase a new policy for the new vehicle.
12. Does gap insurance cover my deductible?
Gap insurance does not cover your deductible in the event of a claim. It only covers the difference between what you owe on your car loan and the actual cash value of your car.