Nationwide offers gap insurance, but the company does not advertise any specific information about how much this coverage usually costs. However, the national average cost of adding gap insurance to a standard car insurance policy is about $20 per year. To get a personalized quote for gap insurance from Nationwide, call Nationwide customer service at 1 (877) 669-6877.
Nationwide gap insurance covers any negative equity you owe on your vehicle. Negative equity is when you owe more on your loan than your car is worth, which happens because cars depreciate so quickly. In the event of a total loss, Nationwide gap insurance covers the “gap” between what your car is worth and what you owe on the loan. “Gap” stands for “guaranteed auto protection” or “guaranteed asset protection,” and this coverage is a worthwhile investment for drivers who lease, have a large car loan, average more than 15,000 miles per year in a newer vehicle, and more.
Nationwide’s gap coverage will pay for the total loss of your vehicle if the car is stolen, but otherwise, gap insurance can only be used in the event of a covered accident. And in that situation, gap insurance only covers damage to your car and does not pay for bodily injuries or the other driver’s property damage. Similarly, if your car is a total loss because the engine fails or transmission blows, your Nationwide gap coverage will not apply.
Drivers should also keep in mind that they will have to pay their deductible before gap coverage kicks in to pay the rest of the bill. That means you’ll probably still have to contribute something financially to get your car replaced.
Finally, if you lease a car, be sure to check your leasing agreement before purchasing gap insurance. It’s often already included in the contract. You can also check with your car dealership’s financing department to see if gap coverage is available, but insurance from a dealership is usually more expensive than Nationwide’s gap coverage.
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