What is GAP Insurance and Why Do You Need It?

When you drive off the dealership lot in a new car, you expect to be covered should anything go wrong. If you get into a fender-bender or your vehicle suffers minor damage from rocks or shopping carts, your insurance typically covers the cost, allowing you to not worry about paying for both repairs and the cost of monthly car payments. What happens, though, when your car is totaled? If your new car is un-drivable, there must be another way to get back on the road without breaking the bank.

What Is GAP Insurance?

When you get into a serious auto collision in which your car is completely totaled, you expect to be taken care of by your insurance. Depending on your coverage, many insurance companies will cover the cost of replacing your vehicle with one of the same value. Unfortunately, this doesn’t necessarily mean you won’t owe any money.

Often, the amount of money you owe the bank on your auto loan is greater than the cost of a car with the same value. This is where Guaranteed Auto Protection (GAP) insurance may come in handy.

GAP insurance is a policy that covers the difference between the cost of a new car and what you already owe on your old vehicle. With the right GAP policy, you can greatly reduce or even eliminate the remaining balance on your auto loan, allowing you to move on with your life and stop paying for a car you no longer own.

Why Should I Get GAP Insurance?

GAP insurance protects your wallet if you’re ever faced with a situation such as theft, a fire or an accident in which your vehicle was totaled. While the insurance policy on your vehicle may cover the cost of a new car, it’ll only pay market value on a replacement. If you’ve only recently gotten your car, the amount of money owed on your totaled vehicle may be much higher than the amount you receive to replace your car. GAP insurance makes sure you don’t have to pay for a vehicle you don’t own by covering some or all of the difference between what you get from the insurance company and what you owe on the totaled car.

GAP insurance policies can be easily acquired through your local Toyota dealer. With a Toyota GAP insurance policy, you may even qualify for up to $1,000 in insurance deductible payments, so you pay even less after an accident.

Purchasing GAP Insurance from Toyota of Seattle

At Toyota of Seattle, your safety is our highest priority. You never want to be stuck with an auto payment on a totaled car. To learn more about purchasing a GAP insurance policy from Toyota of Seattle, contact us online or call 206-382-4300.

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