Guaranteed Asset Protection (GAP) insurance is an optional financial product that covers the shortfall if a financed or leased vehicle is declared a total loss. Standard insurance only pays the current market value of the car, which depreciates rapidly. If the owner owes more on their loan than the car is worth, GAP insurance pays the remaining balance so the owner is not left paying for a destroyed vehicle.
Heard on the job
The customer is upside down on their trade, so make sure finance pitches the GAP insurance before they sign.
Also heard as
- Guaranteed Asset Protection