Drivers in the market for an automobile have a lot of decisions to make. First, you have to decide what body style will support your lifestyle the best. Next, you have to choose what make, model, and trim you want to get. Then you have to decide whether it’s wiser for you to buy or lease the vehicle you’re interested in.
While that’s already a lengthy list of decisions, there’s one more you’ll need to make when you’re shopping for an automobile like the 2019 Jeep® Grand Cherokee or the 2019 Jeep Wrangler. You also have to decide if you should buy gap insurance.
Gap insurance is a type of coverage that differs from your standard car insurance. This type of coverage is designed to pay the difference between what your standard insurance pays and your loan balance if your vehicle is destroyed or your car is stolen and remains unrecovered.
If you’re going to lease a new vehicle, you might be required to purchase gap insurance. Motorists who are going to purchase a car instead may still want to get this coverage even if their lender doesn’t require them to.
In general, it’s advisable to buy gap insurance if you’re going to purchase an automobile and any of the following applies to you:
- Your down payment was less than 20% of your car’s purchase price
- Your auto loan will last for 60 months or more
- The vehicle you bought is expected to depreciate more rapidly than a typical automobile
- You rolled negative equity from a previous car loan into your new auto loan
For help deciding if you should buy gap insurance, talk to the experts in our Jeep finance center near Poway, CA. To buy or lease a new vehicle, head over to Kearny Mesa Chrysler Dodge Jeep RAM today.