Guaranteed Auto Protection / GAP Insurance
Guaranteed auto protection or GAP insurance protects individuals who lease vehicles. If the vehicle is damaged or stolen during the course of the lease, the GAP coverage goes into effect.
As an example, if your car was stolen and not recovered, your insurance company might say that your car was worth $17,000 based on current used car prices. The payoff on your lease might be $20,000. Without GAP Insurance you would be responsible for that $3,000 difference.
It’s common in a lease to be in this negative equity position, especially once you factor in the unexpected costs of fender benders that can lower a car’s resale value even after repairs. Many dealers will try to sell you GAP coverage for about $500. But even though it sounds like a good idea, be wary!
You don’t want to pay the car dealer what amounts to a huge premium just to print a form. Many lease companies include GAP insurance with their lease agreements at no additional cost. Also, many insurance companies will now let you pick up GAP coverage or Auto Loan/Lease Pay-off coverage for a small fee (about $40 per year) on your regular auto insurance.
If your leased vehicle is totaled in a collision, the at-fault driver’s insurance and your own GAP coverage may both come into play. A Seattle car accident lawyer can help you sort out which policy is responsible for what, so you are not left covering a gap that someone else caused. Keep in mind there is also a statute of limitations for car accidents if you want to pursue the at-fault driver directly. You can review our verdicts & settlements to see how we’ve helped other Washington drivers recover the full value of a totaled vehicle, not just the payout their insurer initially offered, and read our client testimonials to see what other clients say about working with our team after a total-loss accident.
