Understanding the Details of Gap Insurance

Feb 4, 2019

When you visit Classic Toyota, you can expect to find Chicagoland Toyota dealers that are passionate about two things: their cars and their customers. We are passionate about sharing automotive knowledge with everyone who comes into our dealership, and we believe a few pieces of information can be as important as the details of gap insurance.

What is gap insurance? Our sales team receives that question a lot when they suggest adding gap insurance to their vehicle. The ‘gap’ stands for guaranteed auto protection. While gap insurance won’t protect your vehicle from things like engine failure or poor mechanics, it can protect you from losing a car in the event of an accident or car theft.

Say for instance you drive a Toyota Camry, but end up totaling it an accident. In this scenario, let’s say you still owe $10,000 on the car, and the totaling only covered $6,000 of that remaining loan. Gap insurance can cover that remaining amount and free up your finances to help you purchase a new vehicle to replace your totaled vehicle.

If you repeat this same scenario without gap insurance, you could be left making payments on a loan for a vehicle that you no longer own. Gap insurance may increase the overall cost of your car purchase, but it can make all the difference in giving you peace of mind while you’re on the road.

Our sales staff at Classic Toyota are strong advocates of gap insurance and are always ready and willing to fill you in on all of the details in person. If you visit our dealership today, we can give you a tour of our showroom, and tell you more about how adding gap insurance to your car purchase can benefit you in the long term.