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GAP Coverage: What is it?

Guaranteed Asset Protection (GAP) is designed to protect you from a deficiency balance that may exist in the event that your lease or financed vehicle is declared a total loss due to accident or theft. If a total loss occurs, and there is a difference between what you receive from your insurance company and the net payoff, the GAP provider, not you, will pay the balance, less exclusions and excess deductibles.


Why get it from your dealership and not your Insurance Provider?

No Deductible: Under the auto insurance GAP policy, you must pay a deductible when you file a claim. Our GAP policy has no deductible and will cover up to $1,000 deductible.

No impact on insurance rates: The more claims you have against your auto insurance policy, the more insurer raises your rates. Claims against our GAP policy do not affect auto insurance premiums.

No risk of cancelation: Auto insurers can cancel policies if the customer files one too many claims. Not true with claims against our GAP policies.

Freedom to switch insurers: If you buy from the dealership, you can switch auto insurers without losing GAP coverage. But if you want to maintain your insurer's GAP coverage, you must stick with that insurer over the term of the vehicle loan.

Replacement vehicle: If consumers get GAP coverage from the insurer and the vehicle is totaled, the insurance company is more likely to fix the vehicle than to total it.


Here is an example: The vehicle is worth $26,000 and the customer owes $30,000 on it. An accident does $20,000 worth of damage. The insurance company can pay $20,000 to fix the car. But if the customer has GAP through the insurer and the insurer totals the car, it has to pay $30,000.

That is why even some insurance agents don’t get GAP from their own company.