Hey, this is Joe Kennedy with the Kennedy Agency in Gilbert, Arizona. Had a client call in asking about gap insurance, so I figured that was worth sharing.
Gap insurance is not actually a car insurance coverage. It’s an option you can add when you purchase your vehicle. So it’s a financing option. And as you probably know, if you lose your car to an accident, if it’s totaled, or if it’s stolen, and you owe more than what the vehicle is valued at, gap insurance will pay the difference.
We do have an option called new car replacement that is very similar. New car replacement will pay out the value of your car if it were a year newer and had 20,000 less miles than your car, new car replacement will pay that value.
So for example, if you have a 2020 vehicle with 30,000 miles, and you have new car replacement, and that car is totaled, the payout on the value of it will be for a 2021 with 10,000 miles. So instead of a 2020 with 30,000 miles, you’d get the value of a 2021 with 10,000 miles.
If you have any questions or would like any clarification on any of that stuff, feel free to reach out. We’d be more than happy to help you out with any questions that you might have out there. Again, Joe Kennedy with the Kennedy Agency in Gilbert, Arizona. Have a great day.