Total your financed car and your insurer pays what the car was worth, not what you owe. If you owe $28,000 on a car now valued at $22,000, that $6,000 difference is yours to eat. GAP (guaranteed asset protection) pays it instead.
That's the whole product. No deductible help, no rental car, no repairs: just the loan-versus-value gap after a total loss or theft.
| Where you buy | Typical cost | Catch |
|---|---|---|
| Your auto insurer | $2 to $5 / mo | Requires comprehensive + collision on the policy |
| Your lender or credit union | $200 to $400 one-time | Often cheaper than dealers; ask before signing |
| The dealership | $400 to $700 one-time | Rolled into the loan, so you pay interest on it |
Sample figures for layout purposes; production ranges come from the quote-sample methodology.
The math is rarely close. Three years of insurer-added GAP at $4/mo is $144. The same protection from a dealer, financed at 9% APR over 60 months, ends up north of $850.
And the flip side: once your loan balance drops below the car's value, GAP protects nothing. Check the balance against a valuation guide twice a year and cancel the moment you're above water. Insurer-side GAP prorates off your bill; dealer GAP usually needs a written refund request most buyers never send.
Usually only within a window: many insurers cap it at loans less than 2 to 3 years old, or require you to be the original owner. The dealer window closes at signing.
No. GAP covers the loan gap only; the deductible clause is the chewy part everyone skips. Billie didn't.
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