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 28, 24
2 min read

Protecting Your Vehicle Investment

Purchasing a car is a major investment, and protecting it is crucial. GAP (Guaranteed Asset Protection) insurance offers essential coverage by covering the difference between what you owe on your car loan and what your insurance pays if your car is stolen or totaled.

How GAP Insurance Works

Standard auto insurance covers the market value of your car in case it’s totaled or stolen, but due to rapid depreciation, the payout may fall short of covering your loan balance. This is where GAP insurance steps in, covering the difference.

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:

  • Peace of Mind: With GAP insurance, you won’t be financially burdened if something happens to your car.
  • Shielding Yourself from Depreciation: GAP insurance protects you from the rapid depreciation of a new car, ensuring you’re covered if the car is lost or totaled.
  • Avoid Financial Setbacks: GAP insurance helps prevent the financial hardship of paying off a loan for a car you no longer have.
  • Affordable Coverage: In addition to its benefits, GAP insurance is often inexpensive, providing great value for the protection it offers.

Get GAP Insurance with WyHy Loans

WyHy offers GAP insurance as an affordable and valuable addition to your auto loan package. By adding GAP insurance to your loan, you can enjoy greater financial security in the event of an accident or theft. It's a simple add-on that ensures your investment is protected, offering peace of mind as you drive your new or used vehicle.

WyHy offers competitive rates and flexible loan options, with the added peace of mind that your investment is covered by GAP insurance.

Secure Your Ride

Securing GAP insurance is a wise decision for protecting your vehicle investment, whether you’re purchasing a new or used car.

Protect your ride before 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.

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