Gap Protection
Guaranteed Asset Protection
About Gap Protection
Gap insurance is an optional car insurance coverage that helps pay off your auto loan if your car is totaled or stolen and you owe more than the car's depreciated value. Gap insurance may also be called "loan/lease gap coverage." This type of coverage is only available if you're the original loan- or leaseholder on a new vehicle.
Gap insurance is optional insurance coverage for newer cars that can be added to your collision insurance policy.
As an example of gap insurance at work, consider John's car worth $15,000. However, he still owes a total of $20,000 worth of car payments. Gap coverage makes up the difference in that amount of the loss.
Reasons to Buy
- Provides the dealer and end customer assurance.
- With longer financing terms, GAP is more helpful.
- We provide all of the training and support to assist you.
Frequently Asked Questions
If your car is totaled or stolen, the gap insurance coverage will pay the difference between the vehicle's actual cash value (ACV) and the current outstanding balance on your loan or lease.
Gap insurance does not cover car payments in case of financial hardship, job loss, disability, or death. Repairs to your vehicle. The value of your car or the balance of a loan if your vehicle is repossessed.
In short, as long as you're willing to check with multiple insurers, you can get gap insurance after you buy a car.
It could take anywhere between five and 45 days for your auto insurer to pay out gap insurance after a claim.
If you did not purchase gap insurance and your vehicle is totaled, you will owe any car loan balance above the ACV payment. You are legally responsible for paying the total balance owed to the lender—even though you no longer have your car and may need to finance the purchase of a new one.