Gap Insurance Cost: Everything You Need To Know About GM Financial

Gap insurance is an important type of coverage for anyone who finances a car through GM Financial. Gap insurance covers the difference between what you owe on your car loan and the actual cash value of the vehicle in the event that it’s totaled in an accident or stolen. Without gap insurance, you would be responsible for the difference, which could be thousands of dollars.

What Does GM Financial Offer?

GM Financial offers two types of gap insurance: a one-time purchase at the time of the loan, or a subscription-based plan that covers you for the life of the loan. The one-time purchase cost is typically a percentage of the loan amount, up to a maximum of $1,000. The subscription-based plan has a lower cost and covers you for the life of the loan, even if you refinance or transfer your loan to another lender.

What Does Gap Insurance Cover?

Gap insurance covers the difference between what you owe on your car loan and the actual cash value of the vehicle in the event that it’s totaled in an accident or stolen. This can be a significant amount of money, especially if you bought your car new and it has depreciated in value. Gap insurance pays the difference so you don’t have to come out of pocket for it.

Who Needs Gap Insurance?

If you are financing a car through GM Financial, it’s a good idea to consider gap insurance. This is especially true if you are buying a new car, as new cars depreciate in value quickly. If your car is totaled in an accident or stolen, gap insurance will help to pay off the remaining balance of your loan, so you don’t have to come out of pocket for it.

How Much Does Gap Insurance Cost?

The cost of gap insurance through GM Financial varies, depending on the type of coverage you choose and the amount of your loan. For a one-time purchase, it typically ranges from 1-3% of the loan amount, up to a maximum of $1,000. For the subscription-based plan, the cost is lower and covers you for the life of the loan.

How Do I Get Gap Insurance Through GM Financial?

Gap insurance can be purchased at the time of your loan, or you can add it to your loan after it has been approved. To purchase gap insurance, simply contact GM Financial and ask about the coverage options. They will be able to provide you with the details and cost of the coverage and help you get the coverage you need.