You’re buying a new car, signing the paperwork, and the finance manager asks: “Would you like to add GAP insurance?” If you’re not sure what it is or whether you need it, you’re not alone.
At [Your Dealership Name], we believe in clear, pressure-free education—so here’s what you need to know about GAP insurance, and how to decide if it’s right for you.
📘 What Is GAP Insurance?
GAP stands for Guaranteed Asset Protection. It’s a type of optional coverage that protects you financially if your car is totaled or stolen and you owe more on your loan than your insurance company pays out.
Example scenario:
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You owe $28,000 on your loan
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Your car is totaled, and insurance values it at $24,000
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You’re stuck owing $4,000 out of pocket unless you have GAP coverage
With GAP insurance, that $4,000 difference is covered, saving you from paying out of pocket for a car you no longer have.
🧾 Who Should Consider GAP Insurance?
GAP insurance isn’t required—but it’s highly recommended if:
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You’re making a small or zero down payment
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You’re financing for 60 months or longer
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You’re buying a vehicle that depreciates quickly
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You’re rolling negative equity from a previous vehicle into your new loan
If any of the above apply, GAP coverage can protect you from financial stress in the event of a total loss.
💰 What Does It Cost?
GAP insurance is relatively inexpensive—often just a few extra dollars per month when rolled into your financing. You can purchase it through:
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Your dealership (like [Your Dealership Name])
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Some auto insurance providers (added to your policy)
One key advantage of buying through us is that coverage is built into your loan, so you’re protected immediately without a separate policy or payment.
🤔 Do You Still Need Full Coverage?
Yes. GAP insurance is not a replacement for auto insurance. It simply covers the “gap” between what your insurer pays and what you owe. It only kicks in when a vehicle is declared a total loss—not for minor repairs or damages.
✅ We’ll Help You Decide With No Pressure
Not sure if GAP insurance makes sense for you? At [Your Dealership Name] in [City Name], our finance team will walk you through the pros and cons based on your vehicle, loan, and budget.
Ask us during your visit, or schedule a quick financing chat online. We’re here to help you make smart, informed decisions—every step of the way.
