GAP Coverage

GAP Coverage Up to 150% of MSRP

GAP coverage helps bridge the difference between your insurance payout and your remaining loan balance, up to 150% of MSRP. Coverage limits and exclusions apply. See contract for full details.

What's Covered

Helps bridge the difference between insurance payout and remaining loan balance
Coverage up to 150% of MSRP
Critical for units with rapid year-one depreciation
Helps offset negative equity after a total loss
Coordinated claims process through primary insurance
15–40%

Depreciation in year one for new powersports and marine units. After a total loss, insurance often pays less than the remaining loan balance, leaving the customer with a shortfall. GAP helps offset that shortfall, subject to contract limits.

How It Works

1

Customer finances a unit and adds GAP at the deal

2

Total loss event occurs (theft, accident, flood, etc.)

3

Insurance pays actual cash value — often less than loan balance

4

GAP applies toward the difference, up to 150% of MSRP and subject to contract terms

Dealer Benefits

Easy-to-explain, high-demand product
Strong margins on every deal
Helps customers handle negative equity after a total loss
Builds trust and long-term relationships

Customer Benefits

Helps offset negative equity after a total loss
Coverage up to 150% of MSRP
Peace of mind on financed purchases
Coordinated claims process

Frequently Asked Questions

Total loss events covered by the customer's primary insurance policy, including accidents, theft, fire, flood, and natural disasters. Specific eligibility, limits, and exclusions are defined in the contract.

GAP coverage helps bridge the difference between your insurance payout and your remaining loan balance, up to 150% of MSRP. Coverage limits and exclusions apply. See contract for full details.

These units depreciate 15–40% in year one while loan balances decrease slowly. This creates a shortfall that standard insurance won't cover after a total loss — GAP helps offset it, subject to contract limits.

No. GAP coverage is available for both new and used financed units, though the shortfall is typically largest on new purchases.

After the primary insurance claim is settled, GAP coordinates with the lender to apply the GAP benefit toward the remaining balance, subject to the limits and exclusions in the contract. Most claims are resolved within 30 days.

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