Is Gap Insurance Worth It?

When it’s time to purchase a new car, truck, or SUV in the Petoskey-area, you know that means you will receive offers for optional coverage and services you don’t think you will need. With gap insurance, it’s an optional service that you should consider. Learn more about gap insurance at Fernelius Toyota, and give our finance center a call with any questions.

What is Gap Insurance?

Gap (Guaranteed Asset Protection) insurance covers the difference (or the “gap”) between the cash value of your car and the amount owed on it. Gap insurance applies to vehicles on a loan or a lease.

Do I Need Gap Insurance?

The big question many ask, “Is gap protection worth it”? Both industry experts and consumers alike agree that getting gap insurance is worth it. Why? There are many reasons to purchase gap insurance rather than hoping for the best each time you head onto the Onaway roads:

  • Depreciation happens the moment you drive of the dealership lot.
  • Accidents can happen when you least expect it.
  • Most insurance companies only cover what your vehicle is worth at the time of the accident.
  • If your new car is stolen or totaled, and you owe more on it than its current deemed value, the gap coverage will take care of that difference.
  • The cost of gap insurance is pretty low and easy to obtain, so there is no reason NOT to have it.
Close up of fender bender

How Do I Buy Gap Insurance?

There are numerous ways to get gap insurance in Indian River:

  • Purchase it from a specialized gap insurance company for a one-time fee.
  • Purchase it from your automotive insurance company, who may offer it for as low as $20 per year.
  • You may be able to buy it for a one-time fee from your dealership or car loan company.

Explore Gap Insurance More at Fernelius Toyota

If you’re ready to get behind the wheel of a new car, explore Toyota warranty options and use our payment calculator to get an estimate on your monthly payments. Be sure to peruse our new vehicle specials so you can save on your next Toyota. Contact us today with additional questions, to find out where the best Michigan lighthouses to visit are, or to set up an appointment.

Man with clipboard assesses vehicle

 

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