What is Gap Insurance?

When insuring your vehicle purchase near Hollywood, you may be offered the option of gap insurance. What does gap insurance do? Gap insurance is designed to cover the difference between the amount owed on your car and the actual cash value of your new car if you get into an accident. Find out more about the benefits of gap insurance with Audi Beverly Hills. 

What Does Gap Insurance Cover, Exactly?

So, what does gap insurance cover in detail? It's designed to cover the value of your vehicle, not property damage or bodily injury. You can see the full breakdown of what your policy will most likely include below:

Gap Insurance Does Cover:

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

Gap Insurance Does NOT Cover:

• Deductible - though there are some gap insurance policies that allow for this
• Engine failures 
• Other mechanical repairs/malfunctions
• Extended warranties
• Death

If you have one takeaway from our answer to, "What does gap insurance do," it's that it helps protect you financially in the event of a total loss. 

Is Gap Insurance Required?

No, gap insurance isn't required in Los Angeles. However, it does come highly recommended if you're purchasing a new vehicle. With pre-owned vehicles, on the other hand, gap insurance may not be as beneficial as these vehicles have already experienced depreciation. Speak with one of our financial advisors to learn more about gap insurance, and if it's a beneficial policy for your situation. 

Discuss Your Insurance Options at Audi Beverly Hills

Whether you're just starting to shop for a new car in Santa Monica, or you're ready to purchase a new Audi, the team at Audi Beverly Hills can help answer all your insurance and financing questions. Connect with us today to learn more!