Do You Need Gap Insurance? 

In the years that we've been a Volkswagen dealer near Glen Burnie, MD, we've earned a reputation for being a trusted source for information about automotive topics. One of the things we're asked about often is gap insurance. Whenever you view our new car inventory, you'll see intriguing models such as the Volkswagen Golf and the Volkswagen Tiguan. Whether you buy a new or previously owned VW car, you may need gap insurance.  

What Is Gap Insurance?  

When you visit our Volkswagen dealership serving Ellicott City, MD and surrounding areas, we'll gladly explain what gap insurance is. Gap insurance is a type of coverage that differs from your standard auto insurance. If your vehicle is stolen and remains missing or is irreparable as a result from an accident, your standard car insurance will reimburse you up to the fair market value of your automobile. While that's certainly generous, it may not be enough if you owe more than that amount to your lender. Gap insurance kicks in to pay the difference between what your standard car insurance policy pays out and the balance of your auto loan up to a pre-set dollar amount.  

When Gap Insurance Is a Good Idea  

The experts in our Baltimore, MD VW finance center will tell you that gap insurance is normally available at a price most drivers find affordable. Here are some instances in which gap insurance is typically worth the modest investment:  

• You rolled negative equity from a previous car loan into your new one  
• Your down payment was less than 20% of your vehicle's purchase price  
• Your automobile is expected to depreciate faster than average  
• You leased your car or you financed your purchase for 60 months or more  

When Gap Insurance Isn't Necessary  

While gap insurance is a smart buy for some drivers, not all motorists need this type of coverage. If you can afford to pay off the difference between what your standard car insurance pays out and your auto loan's balance, you won't need gap insurance. Motorists who own their vehicle outright don't need the coverage either.  

Heritage Volkswagen Catonsville 

To see if you need gap insurance, contact or visit Heritage Volkswagen Catonsville to talk to our finance experts today! We look forward to speaking with you soon. Contact us to learn more about our current new car specials and additional insurance options.