Have you decided on you buying your next car? You might have even finalized your car deal, and the exchange value might seem pleasant too. There is no surprise if you have gone to any significant car dealership as they offer a wide range of vehicles, including the manufacturer’s used car schemes. They provide mechanical checks and warranties like Used Car Warranty Canada or Extended Car Warranty Canada when you are purchasing a used car.

What Else in Your Dealer’s Mind other than Selling You a Car?

In this wide-spread internet era, you can search for the best car dealers near you quite easily, and many dealers find it difficult to survive through the competition by selling merely cars. That’s why almost all the major car dealers have started selling insurance products such as Gap Insurance Canada, regular and extended warranties, used car warranties, and tire insurance.

You would be surprised to know that the main car dealers, in recent times, have been making profits from selling insurance and warranties as much as from the car sales itself. Usually, if the car dealers target to make a profit of around $800 from selling a new or used car, almost half of that profit, that is, around $400 comes from insurance products.

Most of the dealers have been selling the Gap Insurance to almost every car buyer to take advantage of the growing popularity of this variety of insurance products. Also, the cost of the Gap insurance could be dramatically high if you buy your Gap Insurance from the car dealer and not from the insurance company directly.

How Much Can a Gap Insurance Policy Cost You?

The cost of Gap Insurance depends on who is selling you the Gap Insurance, whether an independent dealer, a car franchise dealership, or a car supermarket or directly from the insurance company. While the average cost of buying a Gap Insurance at main car dealers varies between $350-$700 which covers the car replacement value up to $20,000, the luxury car franchise dealers charge an exorbitant amount as they calculate the price of the Gap Insurance as a percentage of the selling price of the car.

The dealers also appoint business managers whose target is to sell only finance and insurance products to the car buyers. That’s why these managers try to sell a Gap Insurance to every buyer irrespective of whether the buyer needs Gap insurance or not.

You must shop around to check insurance providers who can provide you the policy at the most economical rate. It is imperative to check the policy detail before so that you are aware of what you are getting. Gap Insurance will be really helpful for your car thus, select the best service provider for your insurance.