What is BMW GAP Coverage?

If you’ve been driving for years, you know the importance of insurance. In addition to being a legal requirement, knowing that your car is covered in the event of an accident is good for your own peace of mind. But in addition to a regular liability or collision policy, there’s another type of insurance to know about: Guaranteed Asset Protection, or GAP coverage. Here we discuss BMW GAP coverage and what it offers.

GAP Insurance: Essential for Financing

If you plan to buy your car outright, GAP insurance isn’t necessary. But, if you finance the purchase, it is something you should strongly consider. This is because if your car is stolen or totaled in an accident, you’ll be covered.

How GAP Insurance Works

Let’s say the car you are financing gets stolen and doesn’t get recovered. Your insurance company tells you that the car is worth $15,000, and that’s what they will give you. If you owe less than that on your loan, you’re fine. But what if you owe more? You will be on the hook for that remaining difference. If, however, you have GAP insurance, this will cover it.

Leasing and GAP Insurance

While GAP insurance is optional when buying a car, if you plan to lease, you’ll probably have to get it. This is because the dealership (and leasing company) will want to ensure that their investment is as protected as possible. In case of any unexpected problems, it’s best to be safe.

If you have any questions or concerns about GAP insurance or anything else related to financing, contact BMW of Asheville. Schedule a test-drive today!