How Does Gap Insurance Work After a Car is Totaled?

GAP Insurance Banner


In the event of a collision, you want to be sure you have the proper insurance coverage to minimize any out of pocket expenses. This may have drivers in Brandon wondering, “How does gap insurance work if your car is totaled?” There are several great reasons to opt for gap insurance coverage. See how it works and how it can benefit you with the finance experts at Reeves Volkswagen.

What is Gap Insurance?

Gap insurance can be helpful if you are making loan payments, and the current loan balance on your vehicle is more than what the car is worth. Because new cars depreciate immediately after leaving the dealership, there is a period of time where it is likely that you will owe more than the car’s value. If you get into an accident around Wesley Chapel during this time, gap insurance helps cover the gap between what you owe on your loan and its current value. Having gap coverage can help save you a significant amount of money, making it a smart choice for many Clearwater car buyers.

How Does Gap Insurance Work if Your Car is Totalled?

If your vehicle is totaled following a collision, your regular insurance policy will make a payout based on the current value of your vehicle, minus the amount of your deductible. For many drivers with an auto loan, this amount could be less than what is still owed. Here is where gap insurance takes over. This insurance will cover the difference between what you received from the initial payout and the auto loan.

Here is an example:
If you took out a loan of $25,000 and your vehicle was valued at $22,000 when the collision occurred, your primary insurance would only pay that $22,000. Gap insurance covers the $3,000 still left over so that your car loan can be paid in full.

Learn All About Insurance with Reeves Volkswagen

Do you have additional questions like, “how does gap insurance work on a total loss?” If so, the team at Reeves Volkswagen is here to answer all of your insurance inquiries. Contact us today for more information.

More News From Reeves Volkswagen

  • One Used VW Dealer in Tampa Offers Greater Peace of Mind

    Safety and Convenience from Our Pre-Owned VW Dealership When you’re looking for a pre-owned vehicle, safety tends to be among your foremost concerns. Not only do you want a vehicle that is safe to drive, but in these challenging times it’s difficult to shop without concerns relating to health. One used VW dealer in Tampa…

  • Where Should You Lease Your 2020 Jetta?

    Experts Recommend You Lease a 2020 Jetta Last years when Volkswagen redesigned the much-loved Jetta from the ground up, drivers everywhere were thrilled by how the model delivered a more comfortable driving experience than ever. New reviewers are saying that the 2020 Jetta is even better. Take a look at what experts from the industry’s…

  • 5 Reasons to Lease a New 2020 VW Atlas

    Experts Recommend You Lease a New Atlas When Volkswagen first release the Atlas SUV a couple years ago, drivers were thrilled by this expansive, family-friendly ride. Now the 2020 edition of the Atlas is here, and experts say it’s only gotten better. Just take a look at the reviews: Motortrend “Large and comfortable inside…Smooth, compliant…

Saved
Saved Vehicles

SAVED VEHICLES

You don't have any saved vehicles!

Look for this link on your favorites:

Save

Once you've saved some vehicles, you can view them here at any time.

Contact
Contact Us

(813) 499-2247

Call Now

11337 N Florida Ave • Tampa, FL 33612

Get Directions

Today's Hours:

Open Today! Sales: 8:30am-8pm

Open Today! Service: 7am-7pm

Open Today! Parts: 7am-6pm

Reeves Volkswagen 28.0535313, -82.4589577.