Ford GAP Insurance FAQs | Griffin Ford Fort Atkinson

Pretty much every driver knows the importance of car insurance. This is a vital safety net in the event that you are involved in an accident. And while you may be familiar with various types of auto insurance, there’s another type you should also know: GAP insurance. This one doesn’t offer coverage for repairs, but it could affect your wallet nonetheless. To answer your most pressing questions about Ford GAP insurance, the team at Griffin Ford Fort Atkinson has created this short guide.

What is GAP Insurance?

Guaranteed Asset Protection – or GAP – insurance covers you if the car you’re financing is a total loss in a crash or is stolen. This is because insurance companies only usually pay the actual cash value of a vehicle. For example, let’s say you are financing a Ford Escape and it gets totaled in an accident. Your insurance company decides it is worth $10,000, so that’s what they give you. The problem is you owe $15,000 on it.

So, where does that extra $5,000 come from? Well, you. Unless, however, you have GAP insurance. If you do, whatever remaining money is left on your loan will be covered.

What Are the Other Benefits of GAP Insurance?

Aside from the major advantage of saving you possibly thousands of dollars, GAP insurance also has other benefits. It also protects you from depreciation. In addition, it will pay the deductible, as well as the unpaid Ford finance balance, if there is a deductible payout.

Am I Required to Get GAP Insurance?

There are many different types of coverage and car insurance options that may benefit you. Wisconsin requires drivers to have basic auto insurance, and they can be fined up to $500 if found driving while uninsured.

While GAP insurance isn’t required by Wisconsin law, it’s highly recommended for those who want added protection when financing a car.

When Should I Consider Getting GAP Insurance?

GAP insurance isn’t always necessary. If you’re not paying off a big auto loan, it may not be cost-effective. However, if your down payment is less than 20 percent, it’s probably a good idea. The same is true if your loan is 60 months or longer or your car has a high depreciation rate.

Questions about GAP insurance? Get in touch with the experts at our Fort Atkinson, WI dealership to learn more.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Price does not include applicable tax, title, and license charges. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week. MSRP may not represent the actual price at which vehicles are sold in this trade area.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Price does not include applicable tax, title, license and $399 service fee. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week. MSRP may not represent the actual price at which vehicles are sold in this trade area.