If you choose to purchase an Audi Q5 or any of our other amazing models in Nashua, you may be wondering what kinds of insurance you’ll need to protect your investment in the long run. While it’s best to go directly to your insurance agency with questions about your specific policy coverage, we can still shed a light on some supplemental insurance options you might want to inquire about – like GAP insurance.
GAP (Guaranteed Auto Protection) insurance covers the difference between the actual value of your car and the balance you still owe on the loan. This means in cases where you owe more on it than the car is worth and you’re in an accident that totals it, you’ll be covered for everything you owe your financial institution, not just the current value of the car.
GAP insurance is particularly useful to people who don’t have full coverage and want to supplement their existing collision or other coverage. Because cars depreciate so quickly, people who pay a small down payment and choose a long (5-6 year) payment plan are at risk of being “upside down” for longer and owing more than it’s worth.
If the vehicle is totaled when you owe more than it’s worth, GAP insurance can really save your wallet because many insurance plans only give back enough to replace the car (minus the deductible), and sometimes that’s not enough to cover everything you owe to the bank.
Definitely ask your insurance agent about GAP insurance and if it would benefit you in that worst-case-scenario event with your new (or new to you) vehicle. And if you’re looking to lease an Audi Q8 or any of our other SUVs, come by our Nashua Audi dealership today.