Yes, Tesla does offer its own gap insurance called Guaranteed Auto Protection (GAP) to cover the difference between what you owe on your loan/lease and your car’s actual cash value if it gets totaled or stolen. This protects Tesla owners from major out-of-pocket expenses.
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What is Gap Insurance?
Gap insurance pays the gap between your car insurance settlement and remaining loan balance if your car is deemed a total loss. Without it, you could owe thousands extra.
- Pays difference between car value and loan amount after total loss
- Protects from major out-of-pocket costs
- Recommended if financing/leasing a car that depreciates quickly
Who Needs Tesla Gap Insurance?
Tesla gap insurance makes sense for those buying or leasing new Tesla vehicles, which lose over 10% value in the first year. It’s especially important for buyers with:
- High-interest loans
- Long 7+ year loans
- Low/no down payment
- Model S or Model X vehicles
Tesla gap insurance costs $399-$599 for most but saves much more if cars are totaled.
Getting Tesla GAP Insurance
- Included automatically with Tesla leases
- Optional add-on for purchases
- Available in most states through Tesla Finance
- Purchase at delivery or within 30 days after
You’ll need to provide basic info like VIN, loan details, and proof of primary insurance.
Canceling Tesla Gap Insurance
Tesla’s GAP insurance can be canceled within 30 days of purchase for a full refund. You’ll need to contact Tesla Finance and provide:
- Vehicle VIN
- Loan or lease account number
After 30 days, partial prorated refunds may be issued.
Tesla Gap Insurance Claim Process
If your Tesla gets totaled, contact Tesla Finance to file a GAP claim after settling with your primary insurer. You’ll need to provide:
- Police report
- Insurance settlement check
- Loan/lease payoff statement
- Copy of GAP waiver agreement
Tesla Finance pays the lender directly after approving your claim.
Key Takeaways
- Tesla provides its own GAP insurance to owners
- Strongly recommended if leasing/financing new Teslas
- Costs $399-$599 for most drivers
- Purchase at delivery or within 30 days after
- Claims process done through Tesla Finance
Getting Tesla gap insurance can save thousands if cars get totaled early into loans/leases. Compare costs vs. potential savings to decide if it’s worthwhile.
