If you’re interested in purchasing your next vehicle, additional coverage can be a worthwhile investment. Honda gap insurance can make a significant difference in your loan or lease balance if your vehicle gets totaled or is stolen. Priority Honda Hampton is here to highlight what it entails.
What Is Honda Gap Insurance and What Does It Cover?
Honda gap insurance (also known as guaranteed asset protection) is a special type of financial protection that covers the value of your Honda vehicle and the remaining balance of your loan or lease in the event your vehicle is totaled during a collision or stolen and never recovered. If you don’t opt for gap insurance, your regular insurance plans may not offer enough coverage. Gap insurance is also typically required if you plan to lease a Honda vehicle.
Which Drivers Benefit Most from Honda Gap Insurance?
Honda gap insurance is an optimal option if you made a small down payment of less than 20 percent on your vehicle, as it can cover negative equity in your loan. Vehicle owners with longer financing or lease terms, typically 60 months or longer, and higher mileage can also benefit from Honda gap insurance, since these factors can make your vehicle’s value depreciate at a faster rate.
What’s Not Covered Under Honda Gap Insurance?
Honda gap insurance doesn’t cover repairs and maintenance for your vehicle. Instead, you’ll typically need to pay out of pocket or have it covered by your vehicle’s warranty. Other factors that aren’t covered by Honda gap insurance include property damage or injuries resulting from a collision.
Apply for Honda Gap Insurance in Hampton, VA
Do you have any additional questions about Honda gap insurance? Visit our Honda dealership in Hampton, VA, to speak with our team and begin your application.
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