06/13/2026
🚗 Buying a New Car? Read This Before You Get GAP Coverage! 🛑
You’re at the dealership, signing the mountain of paperwork for your new ride, and the finance manager asks if you want to add GAP coverage to your loan.
Your first thought might be: "I'll just call my agent and add it to my auto insurance policy, it's probably cheaper!"
At We Insure Legacies, our priority is always ethical, transparent advice that puts our customers' interests first. That’s why we want to share a piece of industry insight: It is almost always better to get your GAP coverage through your dealership or lender rather than your auto insurance carrier.
Here is why:
Insurance GAP Limits: When you buy GAP through an auto insurance carrier, it is an endorsement on your policy. If you experience a total loss, the insurance company will apply strict rules to the claim. Many carriers cap their GAP payout (for example, they might only pay up to 25% of the vehicle's actual cash value). If your loan is significantly underwater, the insurance company can limit or completely deny the GAP payout, leaving you on the hook for the remaining balance.
Dealership/Lender GAP: When you purchase GAP through your financing company, it generally functions as a "Debt Cancellation Agreement." Because they are the ones holding the loan, if the vehicle is totaled, they simply waive the remaining balance. There are far fewer loopholes, and they are much less likely to deny it compared to an insurance claims adjuster.
Our goal is to make sure you have the right protection, even if that means telling you to buy a coverage product somewhere else!
Getting ready to buy a new vehicle? Give us a call before you drive off the lot. We’ll make sure your auto policy is properly updated and give you honest advice on how to protect your investment.
📞 513-970-2450
💻 weisurelegacies.com
