What is Gap Insurance?

Man filling out insurance form

When you purchase a new car from Findlay Toyota, it means that you will have to go over various options in terms of financing and insuring your car. Of the many optional insurance coverages available, there is gap insurance. What does gap insurance do? It is designed to cover the gap between the owed amount on the car and the true cash value it at the time of an accident. Findlay Toyota has details about what this insurance covers, and how it can benefit your Las Vegas-area drives.

What Does Gap Insurance Cover?

Gap insurance will cover a variety of problems related to your Toyota vehicle. One thing Boulder City drivers should keep in mind, however, is that it is meant to cover damage to your vehicle, and not property or bodily injuries. Below is what gap insurance does, and does not, cover:

  • Gap Insurance Covers:
    • Accident
    • Acts of nature (tornado, hurricane, flood, etc.)
    • Fire
    • Theft
    • Vandalism
  • Gap Insurance Does NOT Cover:
    • Death
    • Deductible (though some gap insurance policies allow this)
    • Engine failures and other mechanical repairs/malfunctions
    • Extended warranties

The main thing to take away from the question, ‘what does gap insurance do?’, is that it is meant to cover the total loss in the event of an accident. While this coverage is optional, it is worth further discussing with your insurance company about how it can benefit you.

Do I Need Gap Insurance?

While gap insurance is not needed, it’s recommended that you opt for the coverage when purchasing a new car and going through the various insurance plans and financing options. Gap insurance is extremely helpful if your dealership offers a plan that includes deductible coverage. Having this insurance gives you peace of mind, and helps you save money in the unfortunate event of an accident. Speak with our financing team to talk about buying gap insurance further.

Explore All Insurance and Finance Options at Findlay Toyota

Whether you are ready to buy a new Toyota, or you are just starting the research process, it’s good to know what your insurance options are. Make sure you know exactly what’s needed, and what you want, before making a purchase. The right coverage can save you time and money down the road. Visit Findlay Toyota, or give us a call with any questions about gap insurance, what does liability insurance cover, what credit score is needed to finance a car, or if you want to know “are extended warranties are worth it?”

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