Why Your Car May Not Be Fully Insured

If you have purchased car insurance in the past, then you probably already know the standard terminology: liability, deductibles, collision, etc. But what you may not know is that if you are buying a new car, then you are probably not covered for the full amount of the car's value if it is in a major accident or stolen.

Why? The reason is that if your Toyota model is totaled or stolen, your insurance will typically pay for the market value of the car at the time of the accident. However, that value will almost always be much less than what you still owe on your car loan. This is because car values decline sharply after the sale.

GAP Insurance provides exactly that: it closes the “gap” between the loan amount and the market value of the car. This will ensure that you will not be liable for out of pocket costs for what your insurance will not cover. At Toyota Of Plano in Plano, TX, we can answer all your questions about GAP Insurance. Please come in anytime.

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