You’re buying a new car, signing the paperwork, and the finance manager asks: “Would you like to add GAP insurance?” If you’re not sure what it is or whether you need it, you’re not alone.
At Homer Skelton Hyundai, we believe in clear, pressure-free education—so here’s what you need to know about GAP insurance, and how to decide if it’s right for you.
📘 What Is GAP Insurance?
GAP stands for Guaranteed Asset Protection. It’s a type of optional coverage that protects you financially if your car is totaled or stolen and you owe more on your loan than your insurance company pays out.
Example scenario:
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You owe $28,000 on your loan
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Your car is totaled, and insurance values it at $24,000
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You’re stuck owing $4,000 out of pocket unless you have GAP coverage
With GAP insurance, that $4,000 difference is covered, saving you from paying out of pocket for a car you no longer have.
🧾 Who Should Consider GAP Insurance?
GAP insurance isn’t required—but it’s highly recommended if:
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You’re making a small or zero down payment
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You’re financing for 60 months or longer
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You’re buying a vehicle that depreciates quickly
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You’re rolling negative equity from a previous vehicle into your new loan
If any of the above apply, GAP coverage can protect you from financial stress in the event of a total loss.
💰 What Does It Cost?
GAP insurance is relatively inexpensive—often just a few extra dollars per month when rolled into your financing. You can purchase it through:
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Your dealership (like Homer Skelton Hyundai)
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Some auto insurance providers (added to your policy)
One key advantage of buying through us is that coverage is built into your loan, so you’re protected immediately without a separate policy or payment.
🤔 Do You Still Need Full Coverage?
Yes. GAP insurance is not a replacement for auto insurance. It simply covers the “gap” between what your insurer pays and what you owe. It only kicks in when a vehicle is declared a total loss—not for minor repairs or damages.
✅ We’ll Help You Decide With No Pressure
Not sure if GAP insurance makes sense for you? At Homer Skelton Hyundai in Olive Branch, our finance team will walk you through the pros and cons based on your vehicle, loan, and budget.
Ask us during your visit, or schedule a quick financing chat online. We’re here to help you make smart, informed decisions—every step of the way.
Bilma Miranda
(901) 262-3158
Homer Skelton Hyundai
