{"id":36416,"date":"2022-11-03T08:38:00","date_gmt":"2022-11-03T15:38:00","guid":{"rendered":"https:\/\/www.freeway.com\/?page_id=36416"},"modified":"2023-09-19T10:29:18","modified_gmt":"2023-09-19T17:29:18","slug":"gap","status":"publish","type":"page","link":"https:\/\/www.freeway.com\/auto-insurance\/coverage\/gap\/","title":{"rendered":"Guaranteed Auto Protection (GAP) Car Insurance: All You Need to Know"},"content":{"rendered":"<section class=\"c-section c-section--bottom-0-spacing \" id=\"default-block_622baea5ad465\">\n    <div class=\"o-wrapper \">\n        \n                                    <h2 class=\"c-section__title\">What Is Guaranteed Auto Protection?<\/h2>\n                                    <div class=\"c-section__content c-section__content--small-top-margin\">\n                                            <div class=\"s-cms-content\">\n                    <p><strong>GAP insurance<\/strong> or debt cancellation pays the difference between the value of your car and the loan balance you owe on your finance in the event that it is stolen or it is declared a total loss. Unfortunately, many drivers find out the hard way that their policy won\u2019t be paying out enough money to actually cover a totaled vehicle. This means you could actually end up still making payments on something you no longer own. Debt cancellation is an <a href=\"https:\/\/www.freeway.com\/auto-insurance\/optional-coverage\/\">optional<\/a> policy that can help keep this from happening.<\/p>\n<p>Here\u2019s an example:<\/p>\n                <\/div>\n                        \n                            <div class=\"c-sections__list-column \">\n                    <ul>\n<li>Actual Cash Value: $12,500<\/li>\n<li>Amount You Owe: $15,000<\/li>\n<li>GAP Pays: $2,500<\/li>\n<\/ul>\n<p>This is additional <a href=\"https:\/\/www.freeway.com\/auto-insurance\/\">car insurance<\/a> to your existing liability, collision and\/or comprehensive coverage.<\/p>\n<p>Those who have a lease contract or finance vehicles may be required to take out this protection as part of their contract. For everyone else, it is an auto insurance policy option. At Freeway, our trained agents can provide information to help you decide what you need.<\/p>\n                <\/div>\n                                    \n            \n            \n                    <\/div>\n    <\/div>\n<\/section>\n\n<section class=\"c-section c-section--bottom-0-spacing \" id=\"default-block_63658bbba68bd\">\n    <div class=\"o-wrapper \">\n        \n                                    <h2 class=\"c-section__title\">How Much Does It Cost?<\/h2>\n                                        <h3 class=\"c-section__title c-section__title--black\"><\/h3>\n                <div class=\"c-section__content c-section__content--small-top-margin\">\n                                            <div class=\"s-cms-content\">\n                    <p>It depends on different factors, such as the market value of your vehicle and the amount of your loan. The maximum amount is 5% of your loan. So, if your loan is $30,000, the most your guaranteed auto protection should cost is $1,500 annually.<\/p>\n<p>It\u2019s worth noting that you\u2019ll pay significantly more if you buy it from the car dealership or your finance company, rather than going through an insurer.<\/p>\n<p>As always, shopping around to\u00a0<a href=\"https:\/\/www.freeway.com\/auto-insurance\/compare\/\">compare car insurance prices<\/a>\u00a0is advised.<\/p>\n                <\/div>\n                        \n                                    \n            \n            \n                    <\/div>\n    <\/div>\n<\/section>\n\n<section class=\"c-section  \" id=\"default-block_63658be5a68be\">\n    <div class=\"o-wrapper \">\n        \n                                    <h2 class=\"c-section__title\">Is Purchase of Guaranteed Auto Protection Insurance Right For Me?<\/h2>\n                                        <h3 class=\"c-section__title c-section__title--black\"><\/h3>\n                <div class=\"c-section__content c-section__content--small-top-margin\">\n                                            <div class=\"s-cms-content\">\n                    <p>One reason you should\u00a0<a href=\"https:\/\/www.freeway.com\/knowledge-center\/auto\/gap-insurance-what-is-it-do-i-need-it\/\">consider purchasing GAP insurance<\/a>\u00a0is that the value of your vehicle depreciates as soon as you drive it off the lot. So if you finance your ride and make a down payment of less than 20%, or perhaps no down payment at all, you may effectively have an \u201cupside-down\u201d loan where the principal of your loan is higher than its worth. If your ride should get stolen or declared a complete loss after an accident, then you\u2019re on the hook for some serious financial consequences, fees and charges.<\/p>\n<p>With this voluntary protection product, you can rest assured you won\u2019t be stuck fulfilling your loan contract on a stolen or totaled car. Instead, you can easily pay off your lender and go about getting a new vehicle for yourself.<\/p>\n<p>Some information to consider when deciding whether you need this protection include:<\/p>\n                <\/div>\n                        \n                            <div class=\"c-sections__list-column \">\n                    <ul>\n<li>If it is financed and new (or slightly used).<\/li>\n<li>You would not be able to pay off your loan balance in the event of a total loss.<\/li>\n<li>You are purchasing an expensive model that is a significant investment.<\/li>\n<li>You made a small down payment.<\/li>\n<\/ul>\n<p>Also, keep in mind that if you drive a lot in a year, your vehicle will depreciate faster than normal. Guaranteed auto protection may be a good idea in that case.<\/p>\n                <\/div>\n                                    \n            \n            \n                    <\/div>\n    <\/div>\n<\/section>\n\n<section class=\"c-section c-section--bottom-0-spacing \" id=\"default-block_63658c0aa68bf\">\n    <div class=\"o-wrapper \">\n        \n                                    <h2 class=\"c-section__title\">How Does it Work?<\/h2>\n                                        <h3 class=\"c-section__title c-section__title--black\"><\/h3>\n                <div class=\"c-section__content c-section__content--small-top-margin\">\n                                            <div class=\"s-cms-content\">\n                    <p>It is only available for brand new vehicles or those less than one year old. You won\u2019t be able to have this protection on an older automobile \u2013 even if you are financing it for more than its market value. It\u2019s not designed to help you get into another vehicle or to replace the one you\u2019ve lost. Its only to help you pay off your lender with the difference between what you owe and the actual cash value.<\/p>\n<p>Some people confuse these policies with <a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/new-car-replacement\/\">new car replacement coverage<\/a>. This type (also only available for new) is a primary settlement to replace your vehicle in the event of a total loss with the same make and model \u2013 or something very close.<\/p>\n                <\/div>\n                        \n                                    \n            \n            \n                    <\/div>\n    <\/div>\n<\/section>\n\n<section class=\"c-section c-section--bottom-0-spacing \" id=\"default-block_63658c24a68c0\">\n    <div class=\"o-wrapper \">\n        \n                                    <h2 class=\"c-section__title\">Do I Need It if I Have Full Coverage?<\/h2>\n                                        <h3 class=\"c-section__title c-section__title--black\"><\/h3>\n                <div class=\"c-section__content c-section__content--small-top-margin\">\n                                            <div class=\"s-cms-content\">\n                    <p>It depends on how new it is, and a few other considerations. In the worst-case scenario, if you are upside down on your loan (owe more than its worth) and it\u2019s stolen, your <a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/comprehensive\/\">comprehensive coverage<\/a> will pay you for the actual cash value. Your GAP will pay whatever is still owed on your loan.<\/p>\n                <\/div>\n                        \n                                    \n            \n            \n                    <\/div>\n    <\/div>\n<\/section>\n\n<section class=\"c-section c-section--bottom-0-spacing \" id=\"default-block_63658c47a68c1\">\n    <div class=\"o-wrapper \">\n        \n                                    <h2 class=\"c-section__title\">Who Doesn\u2019t Need It?<\/h2>\n                                        <h3 class=\"c-section__title c-section__title--black\"><\/h3>\n                <div class=\"c-section__content c-section__content--small-top-margin\">\n                                            <div class=\"s-cms-content\">\n                    <p>In short, those who have sufficient collision protection and put enough of a down payment to match depreciation should be all right. In other words, if you owe less than what your car is worth, then you probably don\u2019t need it. If you bought it outright or can buy another one out of pocket, you don\u2019t need it.<\/p>\n<p>Unlike <a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/liability\/\">liability insurance<\/a> required by states, guaranteed auto protection is not a requirement.<\/p>\n                <\/div>\n                        \n                                    \n            \n            \n                    <\/div>\n    <\/div>\n<\/section>\n\n<section class=\"c-section c-section--bottom-0-spacing \" id=\"default-block_63658c5fa68c2\">\n    <div class=\"o-wrapper \">\n        \n                                    <h2 class=\"c-section__title\">What It Doesn\u2019t Cover<\/h2>\n                                        <h3 class=\"c-section__title c-section__title--black\"><\/h3>\n                <div class=\"c-section__content c-section__content--small-top-margin\">\n                                            <div class=\"s-cms-content\">\n                    <p>This type of policy cannot be used for any type of repair or services since it is based on the assumption, your vehicle is a total loss. If it is a complete loss because a tree falls on it, your GAP would kick in. However, if a tree causes accidental damage but a repair is possible, it won\u2019t cover that. Hopefully, you have comprehensive for that.<\/p>\n<p>The same is true if you are in an accident. If your auto is a complete loss, your guaranteed auto protection would help pay off your balance owed. However, if it repairable, your <a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/collision\/\">collision coverage<\/a> would be used for that.<\/p>\n<p>It doesn\u2019t cover any medical bills or other costs associated with a wreck. It also will not cover any auto deductibles you have, although your deductible coverage may be subtracted from the amount paid out. This depends on your policy.<\/p>\n                <\/div>\n                        \n                                    \n            \n            \n                    <\/div>\n    <\/div>\n<\/section>\n\n<section class=\"c-section c-section--bottom-0-spacing \" id=\"default-block_63658c81a68c3\">\n    <div class=\"o-wrapper \">\n        \n                                    <h2 class=\"c-section__title\">How Can I Get It?<\/h2>\n                                        <h3 class=\"c-section__title c-section__title--black\"><\/h3>\n                <div class=\"c-section__content c-section__content--small-top-margin\">\n                                            <div class=\"s-cms-content\">\n                    <p>You cannot buy it unless you have the <a href=\"https:\/\/www.freeway.com\/auto-insurance\/states\/\">minimum<\/a> coverage, which varies by state, plus comprehensive and collision. Many people refer to this as a full package. If your current auto insurance is <a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/full-coverage\/\">full coverage<\/a>, you can add it to your portfolio, usually by going to your carriers\u2019 website. Typically, you can purchase it from the bank or financial institution that loaned you the money for your vehicle, the dealer or your insurer.<\/p>\n                <\/div>\n                        \n                                    \n            \n            \n                    <\/div>\n    <\/div>\n<\/section>\n\n\n<section class=\"c-contact-channels\">\n        <div class=\"o-wrapper \">\n        <div class=\"c-contact-channels__content\">\n            <h2 class=\"c-contact-channels__title\">Get GAP Insurance for Your Vehicle Today!<\/h2>\n                            <div class=\"c-contact-channels__text\"><p>Now you know more about what GAP is and how it works. Do you know where you can find the best auto policy with it?<\/p>\n<p>Here at Freeway, we provide drivers with all of the automobile coverage they need. We can quickly and easily provide you with an online\u00a0<a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/gap\/#modal-turbo\">insurance quote<\/a>\u00a0or feel free to give us a call at\u00a0<a href=\"tel:800-777-5620\">800-777-5620<\/a>. Finally, you can also visit us at an\u00a0<a href=\"https:\/\/locations.freeway.com\/\" target=\"_blank\" rel=\"noopener\">office near you<\/a>.<\/p>\n<\/div>\n                        <div class=\"c-contact-channels__channel\">\n                                    <div class=\"c-contact-channels__channel_item\">\n                        <a class=\"c-contact-channels__channel_icon c-contact-channels__channel_icon--online\" target=\"_self\" href=\"#modal-turbo\" aria-label=\"Get a quote online\">\n                            <span class=\"o-icon\"><svg aria-hidden=\"true\" focusable=\"false\" role=\"img\"><use xlink:href=\"https:\/\/www.freeway.com\/wp-content\/themes\/freewayv2\/template\/html\/images\/icons\/icons.svg#icon-quote\"><\/use><\/svg><\/span>\n                        <\/a>\n                        <span class=\"c-contact-channels__channel_text\">Online<\/span>\n                    <\/div>\n                                    <div class=\"c-contact-channels__channel_item\">\n                        <a class=\"c-contact-channels__channel_icon c-contact-channels__channel_icon--phone\" target=\"_self\" href=\"tel:800-777-5620\" aria-label=\"Get a quote over the phone\">\n                            <span class=\"o-icon\"><svg aria-hidden=\"true\" focusable=\"false\" role=\"img\"><use xlink:href=\"https:\/\/www.freeway.com\/wp-content\/themes\/freewayv2\/template\/html\/images\/icons\/icons.svg#icon-phone\"><\/use><\/svg><\/span>\n                        <\/a>\n                        <span class=\"c-contact-channels__channel_text\">Over the phone<\/span>\n                    <\/div>\n                                    <div class=\"c-contact-channels__channel_item\">\n                        <a class=\"c-contact-channels__channel_icon c-contact-channels__channel_icon--ubication\" target=\"_self\" href=\"https:\/\/locations.freeway.com\" aria-label=\"Get a quote in our offices\" rel=\"noopener\">\n                            <span class=\"o-icon\"><svg aria-hidden=\"true\" focusable=\"false\" role=\"img\"><use xlink:href=\"https:\/\/www.freeway.com\/wp-content\/themes\/freewayv2\/template\/html\/images\/icons\/icons.svg#icon-location\"><\/use><\/svg><\/span>\n                        <\/a>\n                        <span class=\"c-contact-channels__channel_text\">Visit Us<\/span>\n                    <\/div>\n                            <\/div>\n        <\/div>\n    <\/div>\n\n<\/section>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"parent":25510,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"template-parts\/products.php","meta":{"footnotes":""},"acf":[],"_links":{"self":[{"href":"https:\/\/www.freeway.com\/wp-json\/wp\/v2\/pages\/36416"}],"collection":[{"href":"https:\/\/www.freeway.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.freeway.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/wp-json\/wp\/v2\/comments?post=36416"}],"version-history":[{"count":25,"href":"https:\/\/www.freeway.com\/wp-json\/wp\/v2\/pages\/36416\/revisions"}],"predecessor-version":[{"id":44893,"href":"https:\/\/www.freeway.com\/wp-json\/wp\/v2\/pages\/36416\/revisions\/44893"}],"up":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/wp-json\/wp\/v2\/pages\/25510"}],"wp:attachment":[{"href":"https:\/\/www.freeway.com\/wp-json\/wp\/v2\/media?parent=36416"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}