Gap insurance is designed to protect car owners from financial loss if their vehicle is totaled or stolen. For instance, if you bought a car for $30,000 and, after a year, it’s worth only $20,000 but you still owe $25,000 on your loan, your standard insurance will cover just the car’s market value.
This leaves you with a $5,000 gap to pay out of pocket. Gap insurance would cover that difference, ensuring you’re not stuck with an unexpected bill after a loss. It’s especially helpful for those who financed or leased a vehicle, where the loan balance can often exceed the car’s value early on.
Vehicle service contract, often called an extended warranty, is an agreement that covers specific repairs and maintenance for your car after the manufacturer’s warranty expires. For example, if your car breaks down and needs a costly repair, a service contract could cover that expense, saving you from out-of-pocket costs.
These contracts typically include coverage for major components like the engine and transmission, but the specifics can vary widely. It's a way to protect yourself against unexpected repair bills and extend your peace of mind for the life of your vehicle.
Rustproofing is a treatment applied to a vehicle to help prevent corrosion and rust, which can occur due to exposure to moisture, salt, and other elements. Living in New England, with harsh winters where roads are salted, rustproofing can create a protective barrier on your car's body and undercarriage.
This treatment can prolong the life of your vehicle and maintain its resale value by keeping it looking and performing better over time. It’s especially beneficial those cars exposed to harsh environmental conditions, providing peace of mind against the costly damage rust can cause.
