Guaranteed Asset Protection Insurance 101: A Guide

Guaranteed asset protection insurance is a type of coverage that protects your assets, such as your home, savings, and investments, from creditors in the event of a lawsuit or financial emergency.

This insurance can be especially helpful for small business owners, as it can protect their personal assets from being seized by creditors.

Guaranteed asset protection insurance typically covers a wide range of assets, including real estate, stocks, bonds, and even retirement accounts.

By having this insurance, you can have peace of mind knowing that your hard-earned assets are protected.

Guaranteed Asset Protection (GAP) is an optional insurance coverage offered as a supplement to an auto, motorcycle, boat, ATV, or RV loan.

GAP is designed to protect a loan from negative equity, a situation where you owe more on your vehicle than it's worth.

Negative equity is a common issue after buying a vehicle, and GAP helps mitigate this risk.

GAP is specifically offered to help protect against the financial risk of owing more on a loan than the vehicle's worth.

This insurance coverage is a supplement to your primary auto insurance policy.

GAP protects you against the risk of a deficiency balance or "gap" in the event your vehicle is stolen or damaged beyond repair.

Your primary auto insurance settlement can be less than the balance remaining on your loan or lease.

GAP covers the loan balance that your primary insurance carrier did not cover.

GAP also covers your primary insurance deductible up to $1,000 (not available in all states).

Guaranteed asset protection insurance helps protect you from financial risk in the event your vehicle is stolen or damaged beyond repair. This type of insurance is designed to cover the gap between what you owe on your loan and what your insurance will pay.

The amount you owe on your loan, also known as the loan balance, is a key factor in determining how GAP coverage works. For example, if you owe $20,000 on your auto loan and your car's actual cash value at the time of loss is $15,000, GAP would help waive the $5,500 difference.

In addition to covering the loan balance, GAP may also reimburse you for your car insurance deductibles. According to Example 2, you could potentially get reimbursed for PAID vehicle insurance deductibles up to $500 per loss with unlimited losses per year. This can provide significant financial relief in the event of a loss.

GAP coverage works by waiving the difference between what you owe on your auto loan and what your insurance company pays after a deductible. This can be a significant amount, as seen in the example where a $5,500 difference was waived.

In a typical scenario, your insurance company pays out after a deductible, leaving a gap between the loan balance and the insurance payout. GAP coverage helps fill this gap, protecting your investment in your vehicle.

Here's a breakdown of how GAP coverage works:

This means that if your vehicle is totaled and your insurance company pays out $14,500 after a deductible, GAP coverage would waive the remaining $5,500 balance on your loan. This can be a huge relief, especially if you're already dealing with the stress of a totaled vehicle.

Mechanical Breakdown Protection offers 24/7 roadside assistance, which can be a lifesaver in emergency situations.

You'll have the peace of mind knowing that help is just a phone call away, no matter the time of day or your location.

With Mechanical Breakdown Protection, you'll also get rental car assistance, which can help you get back on the road quickly and easily.

This can be a huge time-saver, especially if you're on a tight schedule or need to be somewhere important.

It's like having your own personal mechanic on speed dial, minus the hefty price tag.

Guaranteed asset protection insurance provides financial protection against the risk of owing more on a loan than the vehicle's actual value in the event of a total loss or theft. This protection can be a lifesaver, especially if you're financing a loan for a replacement vehicle.

The benefits of GAP insurance are numerous. It eliminates the out-of-pocket expense for the remaining loan balance after a loss settlement, and it covers primary insurance deductibles up to $1,000 in most states. This means you won't have to worry about paying out of pocket for unexpected expenses.

Here are some key features of GAP insurance:

GAP Advantage is an add-on to basic GAP protection that gives you further peace of mind. It pays an additional $1,000 toward the purchase or lease of a replacement vehicle if your vehicle is damaged beyond repair or stolen and not recovered.

This extra payment helps bridge the gap between the value of your vehicle and its unpaid loan or lease balance. You'll get a head start on financing or leasing a new or used replacement vehicle when you refinance or lease through the same financial institution.

Guaranteed Asset Protection (GAP) coverage is a smart investment for anyone financing a vehicle. This coverage eliminates the out-of-pocket expense for the remaining loan balance after loss settlement.

GAP coverage provides protection for the term of your auto loan — up to 90 months. This means you're covered for a significant amount of time, giving you peace of mind in case your vehicle is totaled or stolen.

One of the key benefits of GAP coverage is that it covers your primary insurance deductible up to $1,000 (not available in all states). This can be a huge relief in the event of an accident or theft.

GAP coverage is available for new and used auto purchases, with no model, mileage, or year restrictions. This means you can get GAP coverage regardless of the age or condition of your vehicle.

Here are the key features of GAP coverage at a glance: