Understanding GAP Insurance: What It Is and Why You Need It thumbnail

Understanding GAP Insurance: What It Is and Why You Need It

Published Dec 21, 24
2 min read

Why Protecting Your Vehicle is Important

When you purchase a car, you want to ensure it’s fully protected, not just against accidents or theft, but also in case something unexpected happens. That's where GAP (Guaranteed Asset Protection) insurance comes in. It’s an essential add-on that helps cover the difference between what you owe on your vehicle loan and what your insurance will pay if the car is totaled or stolen.

How GAP Insurance Works

In the event that your car is totaled or stolen, your standard auto insurance policy will cover the current market value of the vehicle. However, cars depreciate quickly, and the insurance payout may not be enough to cover the remaining balance on your loan. This is where GAP insurance steps in to cover the "gap" between the two amounts.

Imagine your car is valued at $15,000 but you owe $18,000. If the car is totaled, your insurance will pay $15,000, and GAP insurance covers the remaining $3,000, ensuring you’re not left paying off a loan for a car you no longer own.

Why Borrowers Should Consider GAP Insurance

GAP insurance provides valuable protection for borrowers, offering a range of benefits that make it a wise choice for anyone financing a car:

  • Added Peace of Mind: With GAP insurance, you won’t be financially burdened if something happens to your car.
  • Shielding Yourself from Depreciation: New cars lose value quickly, and GAP insurance ensures you're covered in case of a total loss.
  • Avoid Unexpected Financial Burdens: With GAP insurance, you won’t face the financial burden of continuing to pay for a car that you no longer own.
  • Affordable Coverage: In addition to its benefits, GAP insurance is often inexpensive, providing great value for the protection it offers.

Protect Your Car with WyHy GAP Insurance

When you take out an auto loan with WyHy, you can add GAP insurance to your loan for added protection. This affordable add-on offers peace of mind, protecting your investment in case of an accident or theft.

With WyHy, you get the benefit of competitive rates and flexible loan options, with the added assurance that you have the right protection in place.

Protect Your Vehicle Today

Your car is a major investment, and protecting it with GAP insurance is a smart choice. Whether you're buying new or used, this coverage ensures that your vehicle is safeguarded.

Don’t wait until it’s too late. Don’t wait for an accident to happen—contact WyHy today and find out how GAP insurance can protect your car and keep your finances secure.



Get more information on GAP insurance today. Visit WyHy Loan Center or call us at (800) 442-2392 for more information.

#GAPInsurance #AutoLoanProtection #WyHyCarLoans

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