No one wants to face a total loss of their vehicle. It can be frightening, stressful, and certainly overwhelming. However, when you still owe more than your car is worth, that can make the situation so much worse. That’s why we recommend BMW GAP insurance from BMW of Silver Spring.
What Is GAP Insurance For?
GAP stands for Guaranteed Asset Protection insurance. The coverage is intended to protect you if your BMW car or SUV is declared a total loss and there is a “gap” from what you still owe on your vehicle and its current market value. The insurance protects you in the event of an auto accident, from theft, or from a natural disaster.
How Does GAP Insurance Work?
In the event of an accident, your car will likely be assessed by an insurance adjuster. Then, if deemed a total loss, your insurance company will issue a check for the current market value of your vehicle. If your loan exceeds the amount, that’s where GAP insurance comes in. Additional elements to keep in mind:
- Waives up to $50,000 of the value “gap”
- Covers up to 150-percent of the vehicle’s MSRP value
- Covers your finance agreement terms up to 84 months
Do I Need it?
GAP insurance certainly delivers added peace of mind. While we would never suggest that anyone go without it, if you meet any of these criteria, it is certainly something you should consider:
- You made a down payment of less than 20 percent
- You carried over money from your previous loan
- You financed or leased your vehicle with longer terms
Still have questions? Our financial experts are happy to help. Reach out to our BMW dealership to get started today!