Buying a new car is exciting, but it also comes with financial responsibilities. For drivers in Hershey, PA, gap insurance can be a smart addition to your auto insurance policy, especially if you’re financing or leasing your vehicle. This coverage can save you from unexpected costs if your car is totaled or stolen.
What Is Gap Insurance?
Gap insurance, or Guaranteed Asset Protection insurance, covers the difference between what you owe on your car loan or lease and the vehicle’s actual cash value (ACV). If your car is totaled in an accident or stolen, your standard auto insurance policy will only pay the ACV, which is often less than what you still owe. Gap insurance bridges that gap, ensuring you’re not stuck paying out of pocket.
Why Is Gap Insurance Important for Hershey Drivers?
New cars depreciate quickly, often losing value as soon as they’re driven off the lot. For drivers in Hershey, this means that the amount you owe on your loan or lease can easily exceed the car’s ACV. Without gap insurance, you could be left paying thousands of dollars for a car you no longer have.
Who Should Consider Gap Insurance?
Gap insurance is especially beneficial for drivers in Hershey who:
- Are financing or leasing a new vehicle.
- Made a small down payment on their car.
- Drive a vehicle that depreciates quickly.
Protect Your Investment Today
At IBA Insurance, we help drivers in Hershey, PA, find the right auto insurance coverage, including gap insurance. Whether you’re buying your first car or upgrading to a new model, we’re here to ensure you’re fully protected. Visit IBA Insurance today to learn more about gap insurance and how it can safeguard your finances.
Don’t wait until it’s too late. Contact IBA Insurance in Hershey, PA, to explore gap insurance options and protect your investment.
