GAP Insurance and Vehicle Equity

GAP (Guaranteed Asset Protection) insurance covers the difference between what you owe on your auto loan and what your standard insurance pays if your vehicle is totaled or stolen. Standard insurance pays actual cash value, which may be less than your loan balance.

GAP coverage may be beneficial if you have negative equity, made a low down payment, chose a long loan term, or bought a new vehicle that depreciates quickly. Consult your insurance professional for personalized advice.

VINTrakID helps you monitor your Equity Health Score so you can see if you have positive or negative equity. This insight can inform your decision about whether GAP coverage is relevant for your situation.

You may be able to cancel GAP coverage once you have positive equity—when your loan balance is less than your vehicle's value. VINTrakID's equity monitoring can help you track when you reach this position.

No. GAP insurance is separate from comprehensive and collision coverage. It only covers the 'gap' between loan balance and actual cash value. It doesn't replace your standard insurance.

GAP insurance is typically available at vehicle purchase or shortly after. Requirements vary by insurer. Contact your insurance provider for specific options and timing requirements.