GAP Insurance

GAP (Guaranteed Asset Protection) insurance covers the difference between a vehicle’s actual cash value and the remaining loan or lease balance if the vehicle is written off (stolen or totaled). Since many customers finance high amounts or for long terms, they can end up owing more than the car’s worth at certain points. In Canada, dealerships offer GAP insurance in the F&I office to protect customers from financial loss in such scenarios. This ensures that if an accident occurs and the vehicle is a total loss, the customer won’t be left paying a loan for a car they no longer have.