When you’re researching insurance options for your new Nissan car, you’re likely to come across Nissan GAP insurance. This is a type of auto insurance that is new to even seasoned car owners, and it can be slightly confusing to understand, especially if you are new to owning a car.
Here at our Nissan finance department, our friendly professionals are happy to explain how it works and who needs it.
GAP Insurance Definition
GAP, or General Asset Protection, insurance covers the difference between a car’s worth and the balance the owner owes on its lease or car loan if the vehicle is stolen or can’t be repaired after an accident. This is a benefit that standard collision and comprehensive insurance policies do not cover. It’s not mandatory that drivers carry GAP insurance.
How Does GAP Insurance Work?
GAP insurance covers the gap between the car’s current value and the amount that the owner owes on the Nissan loan. For instance, if your car is totaled, the GAP insurance covers the balance that is left after your standard insurance has paid for the actual cash value of the vehicle.
Who Needs GAP Insurance?
When should you get GAP insurance on your new Nissan car? The following people may benefit from GAP insurance:
People Who Put a Small Down Payment on a Car Loan
You can get GAP insurance if you only paid a small down payment on your car, increasing the amount owed on the vehicle.
Lessees
Some auto leases come with GAP insurance because leases tend to have monthly payments compared to auto loans.
Sports Car Owners
If you own a Nissan sports car with a fast depreciation rate, GAP insurance can help cover the difference between the actual value of the car and the amount that you still owe on it.
Learn more about GAP insurance here at Hall Nissan Virginia Beach.