Have you been thinking about purchasing a pre-owned Mercedes-Benz car or SUV at Mercedes-Benz of Owings Mills? Wondering what type of coverage you need? You may be surprised to know, we recommend GAP insurance to most buyers, even ones considering a pre-owned model.
Why Do I Need GAP Insurance?
Did you know, if you’re faced with a total loss of your vehicle – whether through an accident or theft – your insurance company will only cover the current estimated value of your vehicle? When this happens, many buyers are left with a substantial portion of their loan to cover themselves. GAP (Guaranteed Asset Protection) insurance is designed to cover the difference between the two.
What if I Prefer to Just Pay the Difference?
Purchasing GAP insurance is completely your decision, but we strongly encourage it because many buyers don’t realize just how much they could end up owing. When you secure a loan for a vehicle, your payments don’t strictly go towards your vehicle principal, you’re covering interest as well.
At the beginning of your loan, since the balance you owe is larger, you’ll end up paying more towards interest. This could leave you still owing thousands, even after a reimbursement check.
What if I Decide I Don’t Need it?
Unfortunately, there’s no way of knowing exactly how much an insurance company will decide your vehicle is worth. However, you can get a rough estimate to try and see when your vehicle’s value and what you owe start to level up. When this happens, you can choose to cancel, if you want.
Still Have Questions?
We’re happy to sit down and discuss your buying and coverage options at Mercedes-Benz of Owings Mills any time. Feel free to reach out online or give us a call today!
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