What Is Covered Under Mazda Gap Protection?
Though Mazda models are highly affordable for all sorts of drivers, buying a vehicle is still a major financial responsibility. That’s why a little bit of protection, such as gap coverage, can go a long way. So, what is covered under Mazda Gap Protection? Let’s take a closer look.
What is the purpose of gap coverage?
There’s a good chance you’ve heard of gap coverage before, but you may not know what it actually means or what purpose it serves. When it comes to your vehicle, gap protection picks up where your insurance company leaves off.
Consider this situation. Your vehicle is either stolen or totaled in an accident. You’re relying on your insurance company to pay off the remaining amount you owe on your vehicle lease or loan.
The problem is, vehicles depreciate. Generally speaking, insurance companies will pay the vehicle’s current value, which isn’t always in line with what you still owe on the vehicle loan or vehicle lease. This is where gap coverage comes in.
If your insurance company won’t cover all of what you owe, we don’t want you to be left having to pay the difference. With Mazda Gap Protection, you may not have to, as your gap plan will cover the balance remaining between your insurance coverage and what you owe.
Mazda uses the example of a driver owing $15,000 on a loan or lease. When insurance comes through with only $12,000 and a deductible of $1,000, the Mazda Gap Protection coverage follows up in this situation by covering the remaining $4,000 you would have otherwise had to pay out of pocket, including the deductible.
[Read more: Looking to lease? Don’t forget the benefits of Mazda Wear and Tear Protection]
For more details on what is covered under Mazda Gap Protection, be sure to contact us here at Mazda of Lodi. We’re happy to help explain the benefits and help you decide if the coverage will work for you.