What is gap insurance and do I need it?

Gap insurance covers the difference between what you owe on your vehicle and its actual cash value in case of a total loss. It can be a valuable addition to your auto insurance, especially for those financing used Chevrolet vehicles.

What This Means

When you buy a used car, like a pre-owned Chevrolet, its value starts to depreciate the moment you drive it off the lot. If your vehicle is declared a total loss due to an accident or theft, standard insurance typically pays out only the current market value, which might be significantly less than what you owe on your loan.

Why It Matters

In fact, studies show that new cars can lose up to 20% of their value in the first year alone [Source]. This depreciation can leave you with a financial gap if your vehicle is totaled. Without gap insurance, you could find yourself making payments on a car that no longer exists, which can be particularly concerning when financing used vehicles.

Your Next Steps

If you're considering financing a used Chevrolet from Patriot Auto Sales in Cleveland, OH, it's wise to explore gap insurance options. Consulting with your insurance provider can help determine if this coverage is right for you based on how much you're financing and the vehicle's expected depreciation.

For more personalized advice tailored to your specific situation, get in touch with our team at Patriot Auto Sales today!