This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "GAP insurance" – news · newspapers · books · scholar · JSTOR(June 2012) (Learn how and when to remove this message)
Financial market participants
Organisations
Credit unions
Development finance institution
Insurance companies
Investment banks
Investment funds
Pension funds
Prime brokers
Trusts
Terms
Angel investor
Bull (stock market speculator)
Finance
Financial market
Participants
Corporate finance
Personal finance
Public finance
Banks and banking
Financial analyst
Financial planner
Financial regulation
Fund governance
Stock Market
Super angel
Guaranteed Asset Protection (GAP) insurance (also known as GAPS) was established in the North American financial industry. GAP insurance protects the borrower if the car is written off or totalled by paying the remaining difference between the actual cash value of a vehicle and the balance still owed on the financing.[1] GAP coverage is mainly used on new and used small vehicles (cars and trucks) and heavy trucks. Some financing companies and lease contracts require it.[2]
GAP insurance covers the amount on a loan that is the difference between the amount owed and the amount covered by another insurance policy.[1] Some GAP policies also cover the deductible.[3] This coverage is marketed for low down payment loans, high interest rate loans and loans with 60 month or longer terms. GAP insurance is typically offered by a finance company at time of purchase. Most auto insurance companies offer this coverage to consumers. GAP insurance is often paid upfront and the purchaser is usually entitled to a refund of the unused portion of the premium if the vehicle is sold or refinanced before the end of the loan term.[4]
There are two ways of getting GAP coverage. The first type is an insurance policy sold by a broker. The second type is a waiver agreement sold by a Finance & Insurance Manager. The first is regulated by the insurance industry, the second is unregulated.[citation needed] In either case coverage is usually the same and sold as a soft product through the car dealership. Coverage is usually financed along with the lease/loan. Claims are subject to a total loss. The total loss is usually determined by the primary insurance company’s third-party appraiser.[citation needed]
Exclusions to GAP insurance vary by country or state. Some exclusions include a maximum loss limit of $50,000 while others require a loan term of less than 84 months.[5] GAP is an optional purchase, but many states in the US require that a car dealership offer GAP at the point of purchase. Other states require insurers to offer GAP if a client requests it.[6] States such as Louisiana require that the purchaser sign a disclosure document as proof.[7][8] Although GAP is optional, some finance companies require GAP as a condition to obtaining a loan.[2] The Truth in Lending Act excludes GAP premiums from financial charges if GAP was not required by the creditor, the premiums were disclosed in writing, and the consumer provides a written request for the insurance.[citation needed]
^ ab"Gap Insurance". Retrieved 19 June 2013.
^ abReed, Philli[. "Gap Insurance: How It Impacts Your Car Loan or Lease". Retrieved 19 June 2013.
^Sage, Bobbie. "Gap Car Insurance Coverages". Archived from the original on 13 May 2013. Retrieved 19 June 2013.
^Caucutt, Joshua. "What Is Gap Insurance Coverage for Cars – Is It Worth It?". Retrieved 19 June 2013.
^"What's behind GAP loss ratios?". cbtnews.com. May 16, 2017.
^"RCW 48.22.060". Retrieved 19 June 2013.
^"Louisiana Motor Vehicle Commission GAP Disclosure Form" (PDF). Retrieved 2012-03-28.
Guaranteed Asset Protection (GAP) insurance (also known as GAPS) was established in the North American financial industry. GAPinsurance protects the borrower...
wages and funeral expenses Gapinsurance covers the excess amount on an auto loan in an instance where the policyholder's insurance company does not cover...
Vehicle insurance in the United States (also known as car insurance or auto insurance) is designed to cover the risk of financial liability or the loss...
vehicle insuranceGap Mangione, or Gaspare Charles "Gap" Mangione, jazz pianist and bandleader Gap year, a prolonged period between life stages .45 GAP, the...
Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles...
protection insurance (or GAPInsurance) is an insurance coverage offered as a supplement to automobile insurance policies or auto loans. A GAP policy covers...
through mechanisms such as excess insurance, gapinsurance, and umbrella insurance. Excess pre-hospitalization is an insurance exception that is often interchangeably...
contract can be purchased directly from a few automobile insurance companies. GAPinsurance: GAPinsurance is protection for the loan in the event that the vehicle...
Professional liability insurance (PLI), also called professional indemnity insurance (PII) but more commonly known as errors & omissions (E&O) in the...
National Insurance (NI) is a fundamental component of the welfare state in the United Kingdom. It acts as a form of social security, since payment of...
such as disability insurance, income protection and even funeral insurance, these insurance giants are stepping in to fill the gap where people may have...
Home insurance, also commonly called homeowner's insurance (often abbreviated in the US real estate industry as HOI), is a type of property insurance that...
Health insurance or medical insurance (also known as medical aid in South Africa) is a type of insurance that covers the whole or a part of the risk of...
(also called Medicare supplement insurance or Medicare supplemental insurance) refers to various private health insurance plans sold to supplement Medicare...
Legal protection insurance (LPI), also known as legal expenses insurance (LEI) or simply legal insurance, is a particular class of insurance which facilitates...
which arranges warranty and Gapinsurance both direct to consumers and via intermediaries. They also own two pet insurance brands helpucover since 2000...
affordable health insurance. As of March 2023[update], an estimated 1.9 million Americans in 10 states are within the Medicaid coverage gap according to the...
warranty period. Ride-hailing insurance – An endorsement to Mercury's personal auto policy that covers the gaps between auto insurance and a ridesharing company's...
gaps in insurance, which is required by the terms of most mortgages. The financial industry justifies higher premium costs of force-placed insurance policies...
The GDP gap or the output gap is the difference between actual GDP or actual output and potential GDP, in an attempt to identify the current economic...
The coverage gap between the insured and the uninsured has not decreased even after the recent federal initiatives to extend health insurance coverage. The...
the latter is said to "drop down" to cover them as primary insurance and fill in the gaps in the underlying policies. Hence, the "umbrella" nomenclature...
Classic car and restoration loans RV, boat and motorcycle loans Personal loans Electronic funds transfer Credit life and disability insuranceGAPinsurance...
the United States, health insurance helps pay for medical expenses through privately purchased insurance, social insurance, or a social welfare program...
Australian Lenders mortgage insurance provider. It is listed on the ASX and changed its name from Genworth Mortgage Insurance Australia in October 2022...
whether the maximum amount of gap had been reached, the "True-out-of-pocket" costs (TrOOP) were added together. A health insurance company provided this explanation...
Republic International Corporation is an American property insurance and title insurance company. The company is headquartered in Chicago, Illinois....
The interest sensitivity gap was one of the first techniques used in asset liability management to manage interest rate risk. The use of this technique...