What is Gap Insurance?

car insurance papers and key



Purchasing a new car from Mercedes-Benz of Bloomfield Hills means having to various insurance and financing options with your new luxury vehicle. Of the various optional insurance coverages you can choose from, there is Gap insurance. What does Gap insurance do? It’s meant to cover the gap between what you owe on your vehicle and the true cash value of the car at the time of the accident. This guide goes over what is covered and how it can benefit your West Bloomfield drives.

What Does Gap Insurance Cover?

Gap insurance will cover a variety of issues that relates to your vehicle. One thing that Southfield-area drivers should keep in mind is that this coverage is meant to cover the damage to your vehicle and not the property or bodily injuries. Let’s take a look at exactly what gap insurance does, and does not, cover:

Gap Insurance Covers:

  • Theft
  • Fire
  • Vandalism
  • Accident
  • Acts of nature (tornado, hurricane, flood, etc.)

Gap Insurance Does NOT Cover:

  • Deductible (though some gap insurance policies allow this)
  • Engine failures and other mechanical repairs/malfunctions
  • Death
  • Extended warranties

So, what does gap insurance do? It is meant to cover the total loss in the event of an accident. While it’s an optional coverage, it’s still worth going over with your insurance company to see if it’s right for you.

Is Gap Insurance Needed?

No, you don’t. However, it is highly recommended that you consider Gap insurance when getting a new car and discussing the different insurance plans and financing options. Gap insurance is excellent if your Bloomfield Hills dealership provides a plan that includes deductible coverage. This insurance gives you added peace of mind while helping you save money in the event of an accident. Contact our finance department for additional information about Gap insurance and how to purchase it.

Explore Gap Insurance Coverage at Mercedes-Benz of Bloomfield Hills

Whether you’re ready to buy your next new Mercedes-Benz for sale near Birmingham or you’re starting the search, it’s always a good idea to have the information about the different insurance plans. Be sure you know what you need and want before buying your next car. The right coverage will save you money and time in the long run. Visit our Bloomfield Hills dealership or give us a call with any questions about GAP insurance, what full car insurance covers, how to finance a used car, or comprehensive insurance coverage.

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36600 Woodward Avenue • Bloomfield Hills, MI 48304

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Mercedes-Benz of Bloomfield Hills 42.557334, -83.22114.