Gap Insurance for Your Honda Car

Here at Pacific Honda, we know that there are a lot of decisions involved when you're buying or leasing a new or pre-owned Honda car. Once you've found the perfect model, you even need to decide what kind of car insurance you need. One thing we get many questions about is gap insurance. What is it and how do you know if you need it?

Gap insurance isn't needed by everyone, but if you're one of the drivers who will benefit from it, you'll be grateful that it's there in the event of an accident. 

Essentially, this coverage is meant to cover a “gap” between what the car is worth and what you owe on the vehicle. This is designed to protect your lender's asset, but it can also give you extra peace of mind. If you total your car and the payout isn't enough, gap coverage can ensure that you won't owe money on a vehicle that you can't even drive.

So who needs gap insurance? If you're financing a new car, it's probably wise to opt for gap insurance. New cars can depreciate quickly, so totaling your car within the first few years of your loan might end up with you having to pay the difference to your lender. Gap insurance can cover you in this situation. 

Some lease agreements also require gap insurance, but even if your agreement doesn't it may still be a good idea to get it. Just keep in mind that many insurance companies will also require you to carry other types of coverage, like collision and comprehensive, if you're going for gap insurance.

No matter what kind of insurance coverage you need, know that you can find a reliable vehicle here at our Honda dealership. Our San Diego Honda dealers can answer any questions you may have about the latest models or the financing process. We look forward to assisting you!