Gap insurance. It’s one of those things you may have heard about when you first started looking in to Nissan finance and purchase options. But what is it, and do you need Nissan gap insurance?
What Is Gap Insurance
Gap insurance is well named, because it helps cover a gap. When you first purchase a new car and drive it home, it’s exciting. It’s also the time when your new Nissan model loses the most value over a short amount of time.
This fast depreciation of a new car means that often for some period of time, you will actually owe more on the car than it is worth according to your insurance. Gap insurance helps you cover that time in case your car is stolen or destroyed during that time.
Do I Need Gap Insurance for My Nissan Vehicle?
There are several factors to consider when it comes to gap insurance and whether it’s right for you.
- Are you buying new or used? The chances that a used car will need gap insurance are slim. Since that fast depreciation already happened when the vehicle was new, you’re probably safe without gap insurance.
- How much was your down payment? If you made a 20% or higher down payment, your equity may be high enough to make gap insurance unnecessary. If you made a lower down payment, gap insurance could be a good safety measure.
- Are you leasing your Nissan vehicle? Gap insurance can be important for leased cars, trucks, and SUVs since those first two or three years of a vehicle’s life are when the most depreciation happens. The good news is that this is often built in to a lease, so check with your Nissan dealer if you plan on leasing!
Nissan Vehicles near Me
If you’re on the hunt for Nissan cars for sale, Cleveland drivers can count on expert help from the dealers at Bedford Nissan. We can talk you through financing, gap insurance, and more, so call or visit to get your new year off to a great start!
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