Buying GAP (Guaranteed Asset Protection) insurance from a dealer is often the most convenient option, but it is typically the most expensive way to get coverage. Dealers often bundle the cost directly into your vehicle's financing, which can result in paying interest on the insurance premium itself. How GAP Insurance Works at a Dealership
It's important to remember that GAP insurance does not cover your deductible, vehicle repairs, rental car fees, or down payments for a replacement vehicle.
: Canceling usually requires paperwork and direct contact with the dealer. Is It Worth It? Buying from a dealer might be the right move if you are: buying gap insurance from dealer
: You pay interest on the premium if it's financed.
: Many policies have a cap on the amount payable, often around 25% of the vehicle's ACV . Pros and Cons of Dealer-Bought GAP Insurance Buying GAP (Guaranteed Asset Protection) insurance from a
, such as a luxury or high-end model. Alternatives to the Dealer Before signing at the dealership, compare these options:
: Coverage starts the moment you drive off the lot. : Canceling usually requires paperwork and direct contact
: Dealers and lenders often require it for leases.