Honda Finance 101 - GAP Insurance for Honda buyers in Denver & Centennial
GAP Insurance is a very important consideration when purchasing a vehicle.
First of all, what is GAP Insurance? Let us explain:
When you purchase a vehicle, the vehicle will depreciate faster than the loan value will be reduced. Therefore, you owe more on the vehicle than what the vehicle will bring on the open market (market value). If you are involved in an accident and your vehicle is deemed a total loss, you may have to come out of pocket and pay the remaining balance. This is where GAP Insurance comes into play. GAP Insurance pays the amount of the deficiency. Look at the chart above.
GAP Insurance is usually very affordable and provides a great value at a time when most people need it.
Source: The Four Fatal Mistakes When Buying a Used Care, Author Herm Brocksmith