Is Mazda Gap Insurance Worth It?
Wondering whether to buy Mazda’s Guaranteed Auto Protection (GAP) or whether to get it from your insurance company? We have all the details you’ll need.
Written by Andrea Barrett
Reviewed by Alita Dark
If you’re faced with a total loss after a car accident, Guaranteed Auto Protection (
GAP insurance
) from Mazda can help reduce or eliminate out-of-pocket expenses by covering the difference between the amount owed on the car and its actual cash value—but buying gap insurance through your insurance provider is usually cheaper.If you’ve just purchased a new Mazda and want to protect your investment, you’ll probably be offered Guaranteed Auto Protection at the time of purchase. Not sure whether it’s worth the investment—or whether to buy it through your auto insurance provider instead? Well, you’re in the right place!
In this article, we’ll break down what you need to know about Mazda’s gap insurance, who it’s right for, and how to get the same protection (for cheaper) from your car insurance provider.
How does Mazda GAP work?
Mazda Guaranteed Auto Protection is a type of insurance that covers the gap between how much you still owe on a
car loan
and the actual cash value (ACV)
of your vehicle at the time of the accident. Mazda offers gap insurance and other coverages like roadside assistance
and extended warranty coverage
on all new vehicle purchases.Mazda GAP insurance also covers various other issues related to your new car, but it doesn’t cover actual damage to your vehicle, property damage, or bodily injuries—that’s what your
car insurance
policy is for. Here’s a breakdown of what Mazda GAP insurance does and does not cover.Mazda GAP insurance covers:
- Theft
- Fire damage
- Vandalism
- Collision damage
- Acts of nature (tornado, hurricane, flood, etc.)
Mazda GAP insurance does NOT cover:
- Engine failures and other mechanical repairs or malfunctions
- Death
- Extended warranties
Mazda GAP insurance also covers up to $1,000 of your auto insurance deductible in the event of a total loss, if applicable and permitted by state law.
Remember that Mazda GAP insurance is only available at the time of financing and cannot be purchased later. If you want gap coverage after the original purchase, contact your local Mazda dealership and ask about your options. In most cases, you can purchase gap coverage for a lump sum and add it to your loan payments.
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How much does Mazda GAP cost?
The cost of gap coverage from Mazda varies. Generally, it ranges from about $400 to $700 up front, but if it’s rolled into your loan payments, the cost increases, as you’ll be paying interest on top of the premium.
Mazda GAP vs. alternative gap insurance
If you’re looking for similar coverage without the steep fees from your Mazda dealer, you can also purchase guaranteed asset protection (GAP) coverage through your auto insurance provider. Most major insurers, including
GEICO
, State Farm
, and Progressive
, offer gap insurance.So which is better? Adding Guaranteed Auto Protection to your financing deal with Mazda is a quick and convenient way to protect your new purchase, but it’s generally more expensive than buying through your auto insurance provider. The table below compares the benefits and drawbacks of buying Mazda’s GAP insurance vs. adding the coverage to your regular car insurance policy.
Mazda Guaranteed Auto Protection | Gap coverage from your auto insurance company |
|---|---|
Only available at the time of financing | Available as long as:
|
$400 to $700 | $20 to $40 per year |
Cancellation by contacting dealership | Cancel anytime |
No guaranteed refund | Refunds are standard |
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Do you need gap insurance?
In short, no, gap insurance isn’t always necessary. It’s not mandatory coverage, and while it offers good financial protection when you owe more than your car is worth, it might not be worth the investment.
If you’re leasing through Mazda, you may be required to purchase gap coverage through Mazda or your personal auto insurance provider to protect the dealer's asset. If you’re leasing, be sure to read the terms of your contract to see whether or not you need gap insurance.
Most lenders won’t require you to purchase gap coverage for new Mazda purchases, but it could be worth the extra cost. Depreciation starts the moment you drive your new car off the lot, and
Mazda depreciation
happens faster than average, with the vehicles losing anywhere from 30-40% of their value in the first five years. That means you could end up owing a lot more than your car is worth. When you buy gap insurance, you can have peace of mind that you won’t have to empty your pockets in the event of a total loss.If you’re in any of the following situations, purchasing gap insurance might be worthwhile:
- Your down payment was less than 20%
- You have a Mazda model that depreciates in value quickly
- Your loan term is more than 60 months
- You have a leased vehicle
- You’re a high-mileage driver
How to cancel Mazda gap insurance
Mazda doesn’t outline its cancelation policy for GAP insurance, but in most cases, you can cancel within 30 days of purchase and receive a full refund, minus any cancellation fees. If you decide to cancel after the 30-day grace period, you may only receive a partial refund, but the details depend on your policy and state laws.
If you’re considering canceling Mazda GAP coverage, contact your local dealership and ask about the cancelation process or negotiate terms if you’ve passed the grace period.
Alternatively, ask about gap insurance coverage and pricing before purchasing. That way, you can come to the dealership prepared with what you need to purchase it or search for a better price elsewhere.
What is the Mazda gap insurance refund process?
If you cancel Mazda gap insurance within 30 days of purchase, you may be eligible for a full refund, but you’ll have to contact your Mazda dealership for more details.
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