You’ve got a new vehicle in mind, and you’re excited to sign on the dotted line and drive it off the lot. One thing to keep in mind before you do, though, is whether you’ll be protected should you suffer a theft or total vehicle loss. As Investopedia.com explains, while your auto insurance may cover the cash value of your vehicle prior to the damage or loss, it does not necessarily cover the total outstanding balance of your lease or finance contract, leaving you with a “gap” in your coverage that can potentially translate into a hefty bill.
What is GAP Coverage?
Guaranteed Asset Protection, or GAP coverage, protects a buyer or lessee in the case of total loss. Simply put, it helps bridge the gap between how much is owed for the vehicle and how much the car is worth if it is totaled or stolen. GAP coverage is included with all Ally leases, but not all finance companies include GAP. If you’re purchasing a vehicle, you can typically include GAP coverage at the time you sign the lease or finance contract papers.
Do I Need a GAP Contract?
Accidents happen, and it’s important to consider that if you have a total loss of your vehicle, your primary insurer’s settlement payment amount may not cover the amount you owe. If you are concerned about possibly not having enough money on your own to pay that “gap” amount to the lender, you should consider the purchase of GAP.
Where Do I Get GAP Coverage?
When it comes to purchasing your GAP Coverage, you have several different options. According to DMV.org, GAP coverage is available from a variety of providers. GAP is typically offered by a dealership during the vehicle purchase process. You also may be able to get GAP through your auto insurance company, the lender that’s financing your vehicle, or an independent GAP provider.
Still not sure if GAP coverage is right for you? Learn more about Ally’s GAP coverage here. Also, your local dealer is always available to answer any questions you may have. And don’t forget to head on over to Ally Wallet Wise for tips on this and other great auto topics.
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Comments
Felecia D. on November 7, 2014 at 10:44pm
I differ with many guys here; I identified this blog post I couldn't stop until I had been done, though it wasn't just what I had been searching for, was still the great read though. We will immediately get your current blog feed to maintain in touch of upcoming updates.
stephen w. on October 12, 2016 at 2:02pm
great idea
Dee on August 18, 2017 at 4:29pm
Does Ally's gap insurance cover a car if it's totaled as a result of flood damage?
Simone B. on May 17, 2020 at 6:50pm
I disagree with this post. My car was totaled in February, it is now May and I am still waiting on Gap to pay out so I am able to purchase a new vehicle. I have called multiple times and have been told "next week". Well next week came and went. I need a vehicle to get to work and doctors appointments and I am getting very impatient.
Oscar H. on July 6, 2020 at 2:21pm
Good afternoon, How would I get a claim started?
Ally on July 8, 2020 at 4:09pm
Hi Oscar, in the event that your vehicle is totaled, simply call us at 1-866-212-1304, Option 1 to start your claim. Your contract will provide specific details on your coverage, but we can help get you started by processing your claim and answering any questions.
Matilda L. on July 21, 2020 at 1:21pm
I'm to reach out to the gap insurance pertaining my vehicle to file a claim. Can you point me into the right direction?
Ally on July 21, 2020 at 2:27pm
Hi Matilda, in the event that your vehicle is totaled, simply call us at 1-866-212-1304, Option 1 to start your claim. Your contract will provide specific details on your coverage, but we can help get you started by processing your claim and answering any questions.
Oscar o. on July 28, 2020 at 3:49pm
Hi I have pay off my car how cancel premium gap insurance to get refund Thank you
Ally on July 28, 2020 at 3:55pm
Hi Oscar, please give us a call to discuss your options, 1-866-212-1304. Thanks!
Carla on July 30, 2020 at 9:48pm
how do I get a copy of my GAP policy with Ally?
Ally on July 30, 2020 at 10:57pm
Hi Carla, please give us a call at 1-866-212-1304, one of our team members will be more than happy to help assist you.
April on January 3, 2021 at 12:06am
I totaled my vehicle back in October. I was told this week that I was responsible for paying the rest of my car off despite having GAP. I received a late payment inquiry on my credit report today. I thought the purpose of having GAP insurance was to clear your debts once your car is totaled. Please advise.
Ally on January 3, 2021 at 9:00am
Hi April, please reach out to 1-888-925-2559 so a team member can learn more about your inquiry and discuss your concern further.
Sara s. on January 18, 2021 at 12:57am
I have a car loan with Ally and wanted to know if somebody vandalized as my vehicle and it becomes a total loss do I still have to pay the car loan payments or does Ally automatically include gap. I had a SUV a while back and someone vandalized it I had gap with that vehicle loan. I live in a complex with more than 90 apartments and there’s people who don’t like some people and are very childish and immature and they like to ruin and destroy peoples things.
Ben on January 28, 2021 at 9:45pm
I paid my car off fully in less time than anticipated on my contract. Is it possible to get a reimbursement for the GAP insurance?
Tabitha on March 21, 2021 at 8:23pm
Is disagree with this as well. The company Ally uses is a complete scam. I've called Ally, have sent all the paperwork the gap coverage company has requested, by the date due. Even had a read receipt on. The company said because "the employee is no longer there, they can't approve my claim" how is that my problem? And why would that effect my claim?
April on May 19, 2021 at 6:05pm
I was finance by Ally and had GAP insurance and they didn't pay off my vehicle. I would like to know why I'm stuck with the remaining balance if I was paying for GAP insurance?
Ally on September 8, 2021 at 5:40pm
Hi Teresa, please give us a call at 1-888-925-2559 or chat with us online at ally.com, so we can assist further.
Teresa J. on September 8, 2021 at 6:39pm
My car was a total loss. I had GAP insurance with Ally yet my auto insurance paid the remaining balance on my auto loan and deducted it from my total claim amount. Isn't Ally supposed to cover the balance?
Dale E. on September 11, 2021 at 3:54am
My father has passed an I found this agreement it says it may have cash value any idea what I need to do plz thanks
Ally on September 11, 2021 at 3:55am
Hi, our team would be happy to help if you’ll give us a call at 1-888-925-2559.
Lharris on October 5, 2021 at 4:28pm
Even though I think everyone should have gap insurance when purchasing a new car, Do yourself a favor and think twice about [Ally Gap] I just got done with a claim and found out they won't cover my missed payments even though the whole world experienced a pandemic and missed a few payments via "natural disasters" and my Gap won't even pay half of the balance on the loan, kind of waste for me in my opinion, and choosing Ally, when I could have chose a competitor for a fraction of what they cost me on my car, but lesson learned, PLEASE shop around; maybe that's my fault for thinking big companies like such have empathy, keep forgetting we/I are just dollar signs to them. And since I'm stuck with a balance I'll rate them get a 3.5/10 for service and that goes straight to the one person who answered me when I called and asked why I haven't received an email of the breakdown. 1st and last time
Ally on October 5, 2021 at 4:29pm
Hi, we hear your frustration. Our team would be happy to discuss this further with you if you’ll give us a call at 1-888-925-2559 or chat with us online at ally.com.
Chelsea h. on October 13, 2021 at 2:13pm
I was sent to ally for my GAP coverage through Carvana. I was in an accident and my vehicle is total loss