Are you leasing a brand-new Mazda vehicle from Flanagan Motors Mazda in Missoula, MT? If your answer to this question is yes, then there are a few things you need to know about leasing. While you might have gone over the specific terms of your lease with a representative from our finance department, there’s a certain topic that often gets neglected. This topic is gap insurance, or guaranteed asset protection.
Most drivers have never heard of this type of insurance and often wonder whether or not it’s a necessity in their lives. The answer to this question is a bit complicated to answer. That’s partly because gap insurance is only really necessary when you owe more than the car is worth on either your loan or if you don’t own the vehicle, i.e. you are leasing.
That’s because gap insurance only comes into play when you total your vehicle. Collision and comprehensive insurance will cover the costs incurred during the accident; however, these won’t protect the value of the car itself. Gap insurance will protect the cost of the vehicle so you can replace it with another vehicle of comparable value and allow you to pay off whatever you may owe on the lease or loan.
Gap insurance is quite a difficult thing to understand, since it is so specific to each driver and their vehicle. Prices for gap insurance vary on whether you purchase it from your insurance provider or from our Montana Mazda dealership. That’s why our Mazda finance department can help walk you through buying gap insurance for your new Mazda car.
Visit Flanagan Motors Mazda to learn more about gap insurance and leasing vehicles!