Is Gap Insurance Worth It?

couple talking to finance guy 

When you are ready to buy a new vehicle in Chicago, you may worry about being offered unnecessary services and coverages. However, gap insurance coverage is an option that you will want to consider. Learn more about it at Chicago Northside Toyota, and contact our finance center if you have additional questions.

What is Gap Insurance?

Gap (Guaranteed Asset Protection) insurance will cover the difference (or the "gap") between the cash value of your vehicle and the amount that you still owe on it. This insurance coverage applies to the vehicle whether you have a lease or an auto loan.

Do I Need Gap Insurance?

Is gap protection worth it? Both consumers and experts alike agree that purchasing gap insurance is, in fact, worth it. Here is why you should get gap insurance rather than leave anything to chance on the Lincolnwood-area roadways:

  • Depreciation happens the moment you drive off the dealership lot.
  • Accidents can happen at any time, including right after you drive a new vehicle off the lot.
  • Most insurance companies only cover what your vehicle is worth at the time of the accident.
  • If your new car is totaled or stolen and you owe more on it than its currently deemed value, gap coverage accounts for that difference.
  • The cost of gap insurance is relatively low, and it is easy to obtain, so there is no reason NOT to have it.
Toyota Service Advisor talks to woman and shakes her childs hand

How Do I Buy Gap Insurance?

There are several ways to get this coverage in Evanston:

  • Your regular auto insurance company may offer it for as little as $20 per year.
  • You may be able to buy it for a one-time fee from your dealership or car loan company.
  • You can get it from a specialized gap insurance company for a one-time fee.

Rely on Chicago Northside Toyota for Your Finance & Insurance Needs

When you are ready for your next vehicle purchase, explore Toyota warranty options, and use our payment calculator to estimate your monthly payments. Do not forget to check our new vehicle specials to get an excellent deal on a new Toyota vehicle in Chicago. Contact us today with any questions!