Guaranteed Auto Protection Insurance GAP Policy

Insurance offered in connection with an extension of credit that pays the difference in the amount between the insurance settlement and the balance of the loan if the insured automobile is a total loss.

GAP insurance is often times offered by a dealership when you purchase a vehicle from the dealership. GAP insurance may also be available through your auto insurance company. Before shopping for a car, we suggest you check with your insurance company or agent to see if they offer a GAP product. Typically the coverage is less expensive when added to an existing personal auto policy.

Consider whether the GAP coverage is a good investment for your particular situation. If you have traded in a vehicle and / or made a sizeable down payment towards the vehicle purchase, GAP coverage may not be necessary.

GAP products are offered in various ways including through mail solicitations, the Internet, etc. Unfortunately there are warranty products that are not legitimate products. The decision to purchase Guaranteed Auto Protection should be carefully considered.

There are a wide variety of GAP policies on the market. Contract language can differ widely among the various products. It is important to understand when and how GAP coverage will apply. We recommend you READ and UNDERSTAND the policy BEFORE you BUY.

Dealerships, or an individual in the dealership, must be licensed with the Utah Insurance Department to sell GAP products. A GAP product can only be issued sold, or offered by an authorized insurer, or provider recognized by the Insurance Department.

The policy will provide you with the name of the insurance company and should include the name of the administrator (if applicable). With a quick phone call, or a quick check on the Department?s website, you can verify that the sale of the product adheres to Department requirements.

Information on insurance companies and insurance agents can be found on our website home page, under the heading: Search Company / Agent.

It is always advisable to request a copy of the completed, signed application. Representations made in the application may impact your coverage.

If you have questions about GAP policies, please contact the Property and Casualty Division of the Utah Insurance Department.