Carmax Gap Insurance Phone Number

What is Gap Insurance?

Gap insurance is an optional type of car insurance coverage that helps pay off your car loan if your car is totaled or stolen and you owe more than the car’s depreciated value. It covers the “gap” between what you owe on your car loan and what your car insurance company is willing to pay out. So if you owe more on the car loan than the car’s depreciated value, gap insurance can be a lifesaver. It can help you avoid having to pay out of pocket for the difference.

Gap insurance is important if you buy a new car, because new cars tend to depreciate quickly. In the first year, a new car can lose up to 20 percent of its value, according to Edmunds. That’s why gap insurance can be a valuable financial tool.

Who Needs Gap Insurance?

Gap insurance is typically recommended for people who have a loan on their car and who have put less than 20 percent down on the vehicle. If you bought your car with a loan and have a low down payment, gap insurance will help protect you from owing more money than the car is worth.

Gap insurance is also important if you bought your car with a long-term loan. The longer you have a loan on your car, the more likely it is that you will owe more on the loan than the car is worth. That’s because cars depreciate quickly and over time, you’ll owe more on the car loan than the car’s value.

Where to Get Gap Insurance

If you’re looking for gap insurance, CarMax is one option. CarMax offers gap insurance coverage for up to five years and a maximum of $50,000. The coverage is valid for the life of your loan, which means you won’t have to renew your policy each year.

CarMax also offers other types of car insurance, such as collision and comprehensive coverage, as well as customized coverage for custom vehicles. To get a quote for gap insurance or any other type of car insurance, you can call CarMax at 888-919-7272.

How Much Does Gap Insurance Cost?

The cost of gap insurance will depend on a variety of factors, including the type of car you have, the age of the car, and the length of your loan. Generally, gap insurance will cost between $20 and $40 per year. The cost of gap insurance is typically added to your car loan payments.

What Does Gap Insurance Cover?

Gap insurance typically covers the difference between what you owe on your car loan and what your car insurance company is willing to pay. So if you owe more than the car’s depreciated value and your car is totaled or stolen, gap insurance can help pay off the difference so you don’t have to pay out of pocket.

Gap insurance may also cover other expenses, such as taxes, registration fees, and any unpaid loan balance. Depending on your provider, gap insurance may also cover car rental fees and other expenses.

Conclusion

Gap insurance is an important type of car insurance coverage that can help you avoid having to pay out of pocket for the difference between what you owe on your car loan and what your car insurance company is willing to pay. CarMax offers gap insurance coverage for up to five years and a maximum of $50,000. To get a quote for gap insurance or any other type of car insurance, you can call CarMax at 888-919-7272.