GAP coverage is also known as Guaranteed Auto Protection or Guaranteed Asset Protection and as GAP within the North American financial industry. GAP insurance covers the difference between the actual cash value of a vehicle and the balance still owed on the financing (car loan, lease, etc.). GAP coverage is mainly used on new or used small vehicles (cars and trucks) and heavy trucks. Some financing companies require it. In simple terms; is that it's an extra policy that you might need to protect you from financial loss should your car or truck be stolen or totaled when the amount the auto insurance agency decides to pay is less than what you may still owe the finance company for your vehicle.
GAP coverage or also commonly known as GAP insurance is offered to all our clients at Larson Automotive Group.
GAP coverage covers the amount on a loan that is the difference between the asset value and the amount covered by another insurance policy. Some GAP policies also cover the deductible. This coverage is marketed for low down payment loans, high interest rate loans and loans with 60 month or longer terms. GAP coverage is typically offered by a finance company at time of purchase.
You can get GAP a waiver agreement sold by a Finance Manager at Larson Automotive Group. Coverage is usually financed along with the lease/loan. Claims are subject to a total loss. The total loss is usually determined by the primary insurance company’s third-party appraiser.
Exclusions to GAP coverage vary from state to state. Some exclusions include a maximum loss limit of $50,000 while others require a loan term of less than 84 months. GAP is an optional purchase; however, many states in the US require that a car dealership offer GAP at the point of purchase. States such as Louisiana require that the purchaser sign a disclosure document as proof. Although GAP is optional, some finance companies require GAP as a condition to obtaining a loan.
For more information about GAP insurance please feel free to contact one of our finance managers at Larson Automotive Group.
- Covers up to $50,0002
- Available for new or used vehicles1
- Free Look option3
- Please contact dealer for more details
1Vehicle cannot exceed one-ton load capacity. Not available on commercial vehicles. GAP can be added 6 months after the loan is funded by paying with cash or adding to the loan.
2Maximum loan amount is $75,000 for autos and $125,000 for boats, trailers, and RVs, and includes up to $1,000 deductible.
3Option of canceling for a full refund within 60 days.