Buying a vehicle can be an overwhelming experience, but here at Jim Shorkey Auto Group, we want to make it as easy as possible for you.
One of the biggest questions when you’re buying a new vehicle is: What is GAP insurance and when do you need it?
We asked Chris Tarwacki, one of our finance mangers at Kia Wexford, to explain GAP insurance, so you’re prepared when you come into one of our dealerships.
What does GAP stand for and what does it do?
Guaranteed Asset Protection protects you during the event of a total loss situation. Your vehicles value at the time of an accident is most likely going to be much less that the balance owed. Therefor creating a “GAP” between the two numbers which the customer is responsible for.
Does it only cover accidents?
As a matter of fact, the GAP coverage we provide covers fire, theft, flood, and accidents.
When would I need a GAP policy?
There are many different situations where this coverage is highly recommended although here are the most critical situations: Anytime you are rolling over a balance (negative equity) from a trade in vehicle, making a purchase with less than 25% down or a used car purchase that the bank views as a potential risk. Example: Older model with high mileage
On average how much would it affect my monthly payment?
Depending on the length of your loan this coverage is only about $10 – $15 a month
Should I purchase GAP from the dealer or my insurance company?
Here at Jim Shorkey our product provider does not charge a deductible, they cover up to a 150 percent of the loan value and will never let a negative balance jeopardize your credit.
Can I add this coverage at a later date?
GAP needs to be purchased during your dealership visit so you are fully covered at all times.
Should I be more likely to purchase GAP on a new or used vehicle?
GAP is recommended on both purchases although its more so on a used vehicle because the lack of factory rebates and already established mileage.
Jim Shorkey Auto Group has locations in Western Pennsylvania and the Pittsburgh region including the North Hills, Wexford, Murrysville, North Huntingdon, White Oak, Bakerstown and Uniontown. We also serve Mahoning County in Ohio, including the Youngstown area.
Click the following locations in the list below to visit their websites:
- North Huntingdon Mitsubishi
- North Huntingdon Kia
- North Huntingdon CDJR
- Uniontown Kia
- Uniontown Mitsubishi
- Ford
- North Hills CDJR
- North Hills Mitsubishi
- North Hills Chevrolet
- Murrysville Chevrolet
- Wexford Kia
- Youngstown Alfa Romeo
- Youngstown CDJR
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