Gap Insurance Coverage from State Farm

What is Gap Insurance?

Gap insurance is a type of car insurance coverage that helps bridge the financial gap between what you owe on a financed car and what it’s worth at the time of an accident. It is specifically designed to cover the difference between the actual cash value of a vehicle (what car insurance pays out) and the amount that’s still owed on the car loan. In other words, if you’re in an accident and the car is totaled, gap insurance pays the difference between the actual cash value of the car and the amount you still owe on the car loan.

Why Do I Need Gap Insurance?

Most people don’t realize that when they purchase a brand-new car, its value depreciates immediately. That means that if you’re in an accident within the first few years of owning the car, your car insurance company may only pay out the actual cash value of the car, which may be hundreds or even thousands of dollars less than what you still owe on the car loan. That’s where gap insurance comes in. It pays the difference between what your car is worth and what you still owe on the loan, so you don’t have to come out of pocket.

State Farm Gap Insurance Coverage

At State Farm, we provide gap insurance coverage to our customers to help protect them in the event of an accident. Our gap insurance policy covers the difference between the actual cash value of the car and the amount you still owe on the car loan. When you purchase a car through State Farm, we will provide you with the option to purchase gap insurance coverage, which can help you avoid having to come out of pocket if you’re in an accident.

Benefits of Gap Insurance

Gap insurance from State Farm has a number of benefits, including:

The peace of mind that you’ll be covered if you’re in an accident.
The ability to keep driving your car if it’s totaled, since gap insurance covers the difference between the actual cash value and the amount you still owe on the car loan.
The assurance that you won’t have to come out of pocket if you’re in an accident.

Get Started Today

If you’re in the market for a new car and want to make sure you’re protected in the event of an accident, consider gap insurance coverage from State Farm. Our gap insurance policy can help you avoid having to come out of pocket if you’re in an accident and your car is totaled. To learn more about our gap insurance coverage and get started today, contact your local State Farm agent.