What Does GAP Insurance Cover?

December 13th, 2018 by

Rear end collision with a blue sedan crashing into a red minivan

Buying a new car in the St. James area is exciting! After all, it’s one of the biggest purchases you’ll make in your life. But it does require careful consideration, especially when it comes to financing and insurance. Traditional car insurance is required, but there are also additional insurance options, such as gap insurance. But what is gap insurance, and what does gap insurance do to improve your Lake of the Ozarks-area commutes? Learn more with our team at Kingdom Kia!

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What Does Gap Insurance Do?

Gap insurance covers the “gaps” between the amount owed on the car and the true cash value at the time an accident occurs. Essentially, it provides additional coverage to reduce out-of-pocket costs. Many drivers choose to add a gap insurance policy for the peace of mind that it offers — after all, few things are more frustrating than being on the hook for part of your loan if your car gets totaled.

Gap Insurance Coverage

It’s important to remember that Kia gap insurance isn’t something to be used in place of a traditional insurance coverage plan. Instead, this optional insurance covers a variety of vehicle-related issues that you may encounter in Springfield. Keep in mind that Kia gap insurance only covers damage to your vehicle. It doesn’t cover property damage or bodily injuries like a traditional insurance plan.

  • Gap Insurance Covers:
    • Fire
    • Theft
    • Accident
    • Vandalism
    • Acts of nature (tornado, hurricane, flood, etc.)
  • Gap Insurance Does NOT Cover
    • Engine failures and other mechanical repairs/malfunctions
    • Deductible (though some gap insurance policies allow this)
    • Extended warranties
    • Death

Do I Need Gap Insurance?

The short answer is no, you don’t need Kia gap insurance. While you absolutely must have some sort of insurance coverage that varies state-to-state, Kia gap insurance isn’t an absolute must. However, our finance team definitely recommends Kia gap insurance, because it’s meant to cover total loss if you get into an accident. If you can stand to tack on a bit more to your insurance payment, the confidence added to your daily commute will be worth it! Gap insurance can help save you money down the line and give you peace of mind knowing that you’re covered if an incident does occur.

Explore Finance and Insurance Options at Kingdom Kia

Whether you’re just starting to look at vehicles or you’re ready to start the car-buying process, knowing about your insurance options ahead of time will help you make decisions. Contact us with any questions about insurance coverage or finance options, and visit our showroom in Rolla to explore our new Kia and used car inventories. We’d also love to help you learn more about tire rotation.

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