Have you been shopping for new Mazda models and finally found the one of your dreams? Once you’ve signed on the dotted line, the next order of business is insurance.
Auto insurance has a lot of different layers and components, and honestly, it can be super confusing. What type do you need? How much coverage is necessary? How do you get it? We recommend reaching out to an insurance agent with questions. We also have another recommendation: consider gap insurance.
Gap insurance is a safeguard to protect you in case your car is involved in a total loss, be it a major wreck, theft, or just a freak accident. If you wreck your vehicle, your insurance company (or the company of the driver at fault) will give you a check for the total value of your vehicle. Nothing to worry about, right?
Wrong.
What happens if you owe more on your vehicle than it’s actually worth? For example, say you took advantage of an amazing Mazda lease special. A lease can be very beneficial in terms of low monthly payments and affordably getting into a new model. However, a leased vehicle also needs gap insurance. A leased vehicle will always be worth more than you are paying on it because you are making such low monthly payments. This also comes into play if you finance a new car with a low down payment or over an extended period of time.
Gap insurance covers the difference between what your vehicle is worth and the amount you still owe on it. We know this whole premise can seem confusing, which is why we’re more than happy to help. If you have any additional questions, be sure to reach out! You can visit our Mazda dealership near Staten Island, NY to find out more. And, of course, to get into your own new Mazda vehicle.
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