Why You Should Purchase GAP Insurance with Your Vehicle
The moment you drive your vehicle off the lot, it begins to depreciate.
If your vehicle is written off in an accident or stolen and not recovered,
your insurance company will pay market value — not what you owe.
If you financed with:
There’s a real possibility you could owe thousands more than the vehicle is worth.
That difference is called the “gap.”
GAP Insurance covers that difference.
Why It Matters
- Pays the shortfall between insurance payout and loan balance
- Protects you from owing money on a vehicle you no longer have
- Preserves your credit
- Prevents out-of-pocket financial shock
- Allows you to move forward into your next vehicle smoothly
Without GAP, you could be writing a cheque for several thousand dollars after already losing your vehicle.
Why It’s Especially Important Today
Vehicle prices are higher. Loan terms are longer. Depreciation is immediate. That combination creates greater risk of negative equity in the early years of ownership.
GAP coverage protects you during that most vulnerable depreciation period.
Works for New and Used Vehicles
Depreciation doesn’t only affect new vehicles.
Used vehicles can also carry negative equity — especially if financed with minimal down payment or rolled-in balances.
GAP ensures you’re protected regardless of whether the vehicle is new or pre-owned.
Bottom Line
Accidents happen. Theft happens. Financial setbacks don’t have to.
GAP Insurance protects:
It’s one of the simplest and smartest protections you can add to your financing.
Drive confidently knowing that if the worst happens — you’re not left paying for a vehicle you no longer have.