With Guaranteed Auto Protection (GAP insurance
) from Chevrolet, you’re covered for the difference between your car’s actual cash value and what you still owe on your loan or lease if the vehicle is declared a total loss. But most car insurance companies can offer you the same coverage for a cheaper price. Ready to purchase your new Chevy? The good news is, Chevrolet offers some great deals for leasing or financing your new vehicle—but when it comes time to sign that contract, you may be offered the option to purchase GAP coverage for an added price. In this article, we’ll cover what that means—and whether or not it’s worth it.
How does Chevrolet GAP coverage work?
Similar to Chevrolet’s Protection or Pre-Paid Maintenance Plans, Chevrolet GAP coverage is sold through the manufacturer. Chevrolet GAP is available for any finance amount on new, pre-owned, and leased vehicles at the time of purchase. But how does it work?
Basically, Chevrolet offers two types of GAP insurance: standard GAP coverage and GAP Plus coverage. With standard GAP from Chevrolet, you’ll be covered for the difference between what your vehicle was worth and the amount you still owe on your loan agreement in the event the car is declared a total loss. It also helps cover the cost of your insurance deductible.
GAP Plus coverage offers the same benefits as the standard policy—plus a $1,000 credit toward a replacement Chevrolet vehicle. GAP Plus isn’t available in every state, so if you’re interested in the added benefits of a plus policy, you’ll want to check in with your dealership for more information.
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How much does Chevrolet gap insurance cost?
Exactly how much you pay for Chevrolet GAP coverage may depend on the make and model of your vehicle and your driving profile—but, generally speaking, it costs between $700 and $1,000 to add GAP protection to your Chevrolet loan or lease contract.
Chevrolet gap insurance vs. alternative gap insurance
Chevrolet isn’t the only company out there offering GAP coverage. A similar form of insurance—known as “guaranteed asset protection” or “gap” insurance—is offered through many car insurance companies—and often, at a cheaper price than what the dealership charges.
So while adding GAP coverage to your financing deal right at the Chevy dealership is definitely a convenient option, it’s not always the most cost-effective. Check out the table below to learn more about the pros and cons of buying Chevrolet’s GAP coverage versus adding it to your existing car insurance policy:
Chevrolet Guaranteed Auto Protection (GAP) | Gap coverage from your auto insurance company |
|---|
Can only be added at the time of the vehicle’s purchase Offered in terms of up to 8 years No maximum dollar amount on covered losses that are waived
| Can be added to your policy at any time when your loan balance is greater than your vehicle’s actual cash value (ACV) The vehicle meets your insurance providers age and mileage requirements, generally meaning the car is less than three years old and has low mileage Must be added to a policy that includes collision and comprehensive coverage
|
| |
Can be canceled at any time as long as no claim has been filed | Can be canceled at any time |
| |
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Do you need gap insurance?
Gap insurance is typically an optional coverage—unless the terms of your lease or financing agreement require you to buy it. While gap insurance can give you some much-needed financial protection during the period when you owe more than your new car is worth, it’s not required in most instances (and it isn’t always worth it). If you’re leasing your car, check the terms of your contract to see whether or not you need gap insurance.
How to cancel Chevrolet gap insurance
If you purchased Chevrolet GAP coverage, you have the option to cancel the policy within 30 to 60 days and receive a full refund.
What is the Chevrolet gap insurance refund process?
You can cancel your Chevrolet GAP policy at any time. When you cancel early, Chevrolet reimburses you for the portion of your unused premium.
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