GAP Waiver & Insurance

A Guaranteed Asset Protection (GAP) Waiver is a contract for a separate charge in which a creditor agrees to waive all or part of the amounts due on a borrower’s finance agreement (car loan) if a vehicle is involved in a total loss or unrecovered theft.

GAP Waivers can be offered by a dealership at the time of a vehicle purchase. Dealerships and the individuals in the dealership must be licensed to sell, offer to sell, or otherwise provide a GAP Waiver.

In some cases, your insurance company may offer GAP Coverage in the form of an endorsement on your personal automobile policy. Typically, the coverage can be less expensive when added to your existing auto policy. Before the purchase of your next car, we suggest you check with your insurance company to see if they offer this coverage.

The decision to purchase such coverage, in either case, should be considered carefully. Consider if this coverage is a good investment for your particular situation.

Please READ and UNDERSTAND the contract or endorsement before your purchase and always request a copy of the completed, signed agreement or application.

If you have further questions about Guaranteed Asset Protection (GAP), please contact the Property and Casualty Division of the Utah Insurance Department.