Kia Gap Insurance

What Is Gap Insurance?

When you opt for Kia gap coverage, you get the peace of mind you deserve. This special type of insurance, also known as guaranteed asset protection, isn’t the traditional auto insurance that is required by law. However, it is optional for drivers who leased or financed their Kia.

Here’s how it works: If your Kia is stolen or totaled, gap insurance will cover the difference between your model’s value and the outstanding amount on your loan or lease. Let’s look at an example:

You have financed or leased a Kia worth $20,000. Not long after, you find yourself in an accident and your insurance company determines it is totaled. Worry not, though, because your auto insurance should cover most of the loss.

When the insurance adjuster looks at your Kia vehicle, they determine that your vehicle is only worth $15,000. However, you have $18,000 left on your loan or lease that you’re still responsible for paying. This is where gap insurance comes in. It will cover the remaining $3,000!

Do I Need Gap Insurance?

Whether you are loaning or leasing your Kia, it’s a smart idea to add on gap coverage. Not only can it save you a significant amount of money in the case of an emergency, but it can also help you meet insurance requirements.

If you’re not sure if you need gap coverage for your Kia, take a look at the following list. If you fall into one or more of these categories, Kia gap insurance is beneficial for you:

• You are financing your Kia model for 60 months or longer.
• You have leased a Kia (gap insurance is often required for those who lease).
• You are buying a Kia and making a down payment that’s less than 20 percent.
• You’re planning on putting a lot of miles on your Kia (this quickens depreciation).
• You wish to balance your previous auto loan with your new auto loan.

How to Secure Kia Gap Insurance

If you wish to add on gap insurance to fully protect your Kia, the professionals in our finance center can help. They will be happy to go over all the details of this type of coverage with you, ensure that it’s right for your situation, and set you up with a plan that works for your lifestyle.

Then, when it’s time to remove gap insurance from your plan, they can help with that as well! This is typically smart when you have paid off your loan; however, you can cancel at any time.