If you’re thinking about buying one of the Subaru cars in our inventory, we encourage you to head over to our Subaru dealership near Schaumburg, IL. We’ll show you the latest Subaru models and help you pick the vehicle that’s best for you based on your personal and financial situation. One thing we’ll discuss with you is gap insurance.
While gap insurance is a kind of car insurance, it differs greatly from your standard auto coverage. Whereas your standard policy will pay up to the current market value of your vehicle if it’s destroyed, gap insurance will cover the difference between that value and the amount you owe on your automobile.
No matter what kind of vehicle you buy, the value of your car will decrease over time thanks to depreciation. When this happens, some motorists discover they’re upside down in their vehicle, meaning they owe more than their automobile is worth. If you’re in this situation and your car is totaled, you’ll have to pay the difference between your loan balance and your vehicle’s current value if you don’t have gap insurance.
In general, it’s wise to get gap insurance if you put down less than 20 percent when you bought your car, you rolled the balance of an old loan into your current car loan, or your vehicle will depreciate very quickly. It’s also advisable to purchase gap insurance if it will take you 60 months or longer to pay off your car loan.
If you take advantage of one of our Subaru lease specials, getting gap insurance may be more than a good idea. It might even be a requirement. If that’s the case, don’t walk away from a great lease deal because gap insurance is very affordable.
To learn more about when it’s a good idea to get gap insurance, contact our Subaru North Aurora dealership today.