What is CarMax GAP insurance? GAP stands from Guaranteed Asset Protection as the services offered by CarMax. It helps you to cover the unexpected expenses if there been something bad to your financed or leased car. GAP is needed since loads of lenders will require you to pay this insurance besides paying collision and comprehensive coverage. If you are getting a financed/leased car from CarMax, this service probably will be offered as well.
First of all, you may wonder what CarMax is. CarMax is the largest car retailer in the America which focuses more on used cars. Many said even though buying cars in CarMax will be a little bit more expensive, it has been a pleasure to have a deal with CarMax dealership. Wide options of vehicles, easy purchasing process, and marvelous customer service are what makes CarMax is referred as the greatest dealership chain in America.
Let’s get back to the topic: CarMax GAP insurance. As earlier mentioned, getting a GAP insurance means protecting yourself from any unwanted money wasting. For this, getting an insurance means you are saving some money in case of something bad happens to your car.
When will you need GAP insurance? For this question, it will be better if you learn it by taking an example. Suppose you take a loan for car with the price of $28,000, and you have been paying for $8,000, which means you need to pay the rest $20,000. But something bad happened, and your car totally becomes a wreck. Should you pay for the fixing and continue to pay the installment?
That’s exactly where GAP insurance will come to play. This CarMax GAP insurance coverage is supposed to be used along with comprehensive and collision coverage – and have you taken this coverage. It means you will also get reimbursement from the collision coverage. The amount will usually be based on the depreciation value, which is around 20% per year.
So, let’s say that the value of your car after that depreciation is around $17,000 and your collision coverage is worth that amount. Then GAP insurance will help to pay the rest $3,000. No need to pay it off from your own pocket.
So, is the GAP insurance worth to buy? It is important to know that GAP insurance will be available only if you are leasing or financing a vehicle. If you are still confused whether to buy it or not, then it is great to ask your queries about CarMax GAP insurance to CarMax customer service.