Menu

Get Directions

1580 New State Highway, Raynham, MA, 02767

What is Gap Insurance?

Woman upset over accident


Most often, when you purchase a new car, you’ll take out an auto loan to do so. That’s why, when discussing insurance options for your new vehicle, you may want to consider gap insurance. This type of insurance helps protect you if you have an outstanding auto loan and your vehicle is damaged. Below, Silko Honda has covered this topic in-depth to give you a better understanding of the type of coverage this insurance provides.

What Does Gap Insurance Do?

Gap insurance is a type of auto insurance designed to cover the gap between the owed amount on the car and the true cash value of the car at the time of an accident. So if your car is stolen, or totaled from an accident, gap insurance will fill the void between what traditional insurance will payout, and the remaining balance of your loan. This leaves you with a clean slate instead of you being stuck making payments on a vehicle you can no longer drive.

What Does Gap Insurance Cover?

Gap insurance is meant to cover damage to your vehicle, not bodily injuries or property damage. See what exactly is and isn’t covered by gap insurance:

Gap Insurance Covers:

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

Gap Insurance Does NOT Cover:

  • Deductible (though some gap insurance policies allow this)
  • Engine failures and other mechanical repairs/malfunctions
  • Extended warranties
  • Death

Do I Need Gap Insurance?

No, it’s not mandatory like liability insurance. However, it’s highly recommended that you opt for gap insurance when purchasing a new car. Pay a visit to Silko Honda and we can discuss this further when going through the various insurance plans and financing options available to you.

Explore All Insurance and Finance Options at Silko Honda

Wherever you’re in the car-buying process, being informed about insurance options, vehicle protection plans, and vehicle service contracts can save you money and frustration down the road. At Silko Honda, we want to make sure you fully understand what you want and need before purchasing a car. To speak with one of our representatives, visit us today in Raynham or simply contact us online with any questions you may have!

More From Silko Honda

  • How Much Can a Honda Pilot Tow?

    The 2022 Honda Pilot is a spacious, powerful, and innovative SUV that can help you handle any Brockton adventure. This family-friendly SUV sports an innovative interior, tons of cargo space, and an attractive design that will turn heads on the Taunton streets. What’s more, the new Honda Pilot offers plenty of power from under the…

  • 2022 Honda Civic Interior

    A reliable and fuel-efficient sedan like the 2022 Honda Civic might be just what you need to enhance your daily Brockton commutes and weekend getaways. On top of the Honda Civic design that gives you and your family ample interior space, the Honda Civic interior is stocked with a host of features that bring relaxation…

  • 2022 Honda Civic

    Brockton customers and auto experts everywhere are excited about the arrival of the all-new 2022 Honda Civic. So what can you expect from the latest version of the incredible Honda lineup? Take a look at the 2022 Honda Civic features and how Honda has redesigned the 2022 Honda Civic with Silko Honda today. The Honda Civic…

Search
Contact
Glovebox
Search
Contact Us
Glovebox
Silko Honda 41.9038297, -71.007257.