What Is Carmax Gap Insurance and How Much Does It Cost?

Gap insurance, also known as guaranteed auto protection, is a financial product that helps protect car owners from owing money on a car loan if their vehicle is totaled or stolen. This type of insurance is important for people who are financing a car, since it covers the "gap" between what the car is worth and what is owed on the loan. Carmax Gap Insurance is a type of gap insurance that is offered by Carmax, a car dealership with over 200 locations in the United States.

Carmax Gap Insurance is available to anyone who purchases a vehicle from a Carmax dealership. It is an add-on to the loan, so the cost is included in your monthly payments. The amount of the coverage depends on the value of the car and the amount of the loan. The coverage is usually for the difference between the car’s value and the amount of the loan, up to a certain amount.

Carmax Gap Insurance is a great way to protect yourself from having to pay out-of-pocket if your car is totaled or stolen. It can also help you if you get into an accident and the other party doesn't have sufficient insurance to cover the cost of repairs. With Carmax Gap Insurance, you can be sure that you'll be covered if something happens to your car.

How Much Does Carmax Gap Insurance Cost?

The cost of Carmax Gap Insurance depends on the value of the car and the amount of the loan. Generally, the cost is a percentage of the loan amount. For example, on a loan of $20,000, the cost of Carmax Gap Insurance could be anywhere from $100 to $300. The cost is usually added to the loan, so it’s included in the monthly payments.

It’s important to note that Carmax Gap Insurance does not cover any costs associated with an accident. It only covers the “gap” between what the car is worth and what is owed on the loan. If you get into an accident and the other party doesn’t have sufficient insurance to cover the cost of repairs, you’ll need to pay those costs out-of-pocket.

When to Consider Carmax Gap Insurance

Carmax Gap Insurance is a great option for anyone who is financing a car and wants to protect themselves from owing money on a car loan if their vehicle is totaled or stolen. It’s also a good option for anyone who is concerned about having to pay out-of-pocket if they get into an accident and the other party doesn’t have sufficient insurance to cover the cost of repairs.

It’s important to do your research and compare different types of gap insurance before deciding which one is best for you. Carmax Gap Insurance offers a great level of protection, but it’s important to make sure it’s the right option for your situation. Be sure to ask questions and read the fine print so you know exactly what you’re getting.