Man signing document

What is Gap Insurance?

When you purchase a new car, you want to be protected by insurance, so what is gap insurance and what does it protect? An optional insurance coverage, gap insurance is designed to cover the gap between the amount you owe on a car and the true cash value of the car at the time of an accident. Any discussion that involves car depreciation can be a tricky one, so we’ll break down the nitty gritty details of gap insurance for Omaha drivers below. As always, feel free to reach out to the Honda of Lincoln finance center with any questions!

What Does Gap Insurance Cover?

First, let’s establish what gap insurance doesn’t cover. Gap insurance is not meant to cover damage to your vehicle, property, or bodily injuries. Now that we’ve gotten that out of the way, gap insurance will trigger in the following instances:

  • Gap Insurance Covers:
    • Theft
    • Fire
    • Vandalism
    • Accident
    • Acts of nature (tornado, hurricane, flood, etc.)
  • Gap Insurance Does NOT Cover:
    • Deductible (though some gap insurance policies allow this)
    • Engine failures and other mechanical repairs/malfunctions
    • Death
    • Extended warranties

In short, gap insurance becomes active when an accident results in the total loss of your vehicle. Gap insurance is optional, but if you owe a lot on your loan, it is worth discussing with your insurance company.

Do I Need Gap Insurance?

It is highly recommended that you opt for gap insurance when purchasing a new car. Gap insurance is especially helpful if your dealership offers a plan that includes deductible coverage. Having this insurance will give you peace of mind, and help you save money, in the unfortunate event of an accident. As you discuss financing options, explore the pros and cons of gap insurance with our experts in the Honda of Lincoln finance center.

Explore All Insurance and Finance Options at Honda of Lincoln

We encourage Bellevue residents to enter into a car purchase with as much knowledge as possible. Whether that means researching the various certified pre-owned Honda models we have in stock, researching your insurance options, or reading up on the benefits to leasing vs. buying, we’re here to help! Feel free to reach out with any questions you encounter.

More From Honda of Lincoln

  • 2020 Honda Ridgeline Arrives at Dealerships with New 9-Speed Transmission, Standard Honda Sensing®

    Read at December 12, 2019 — TORRANCE, Calif. Honda Sensing®, 9-Speed automatic standard on all Ridgeline trims Display Audio with Apple CarPlay® and Android Auto™ standard Remote-locking tailgate, wider-opening rear doors add owner convenience The freshened 2020 Honda Ridgeline arrives at dealerships starting Dec. 16 with a host of updates, including a standard 9-speed automatic…

  • Type R Performance Goes to Next Level with New Race-Ready Civic Type R TC

    Read at December 12, 2019 Engineered by Honda Performance Development for SRO TC Americas and amateur Touring Car competition Type R TC joins Civic Si TCA and Type R TCR in Honda’s turn-key Civic-based customer racing portfolio New race-ready Type R available to Honda Racing Line customers SANTA CLARITA, Calif. – Honda today took the wraps off…

  • Passport to a Dream: New Honda SUV Joins HGTV Dream Home 2020

    Honda travels to picturesque Hilton Head Island, South Carolina, as exclusive automotive partner and featured vehicle of HGTV Dream Home Giveaway 2020 Read at December 5, 2019 — TORRANCE, Calif. Honda heads to Hilton Head Island, SC this winter as the exclusive automotive sponsor of the HGTV Dream Home Giveaway® 2020. The grand prize package…

Contact Us ×


Call Now

2770 Yankee Hill Road • Lincoln, NE 68516

Get Directions

Today's Hours:

Sales: Closed

Service: Closed

Parts: Closed

Honda of Lincoln

2770 Yankee Hill Road Lincoln, NE

Phone: 402-437-1234,2770+Yankee+Hill+Road,Lincoln,NE


Phone: 402-437-1201

2770 Yankee Hill Road Lincoln, NE


Phone: 402-437-1234

2770 Yankee Hill Road Lincoln, NE


Phone: 402-437-1222

2770 Yankee Hill Road Lincoln, NE
40.7272722 -96.6808129
[schema type="organization" orgtype="LocalBusiness" url="" name="Honda of Lincoln" description="" street="2770 Yankee Hill Road" city="Lincoln" state="NE" postalcode="68516" country="USA" email="" phone="402-437-1234" logo=""]
Honda of Lincoln
Honda of Lincoln
2770 Yankee Hill Road
Lincoln, NE, 68516 USA
Honda of Lincoln 40.7272722, -96.6808129.