What is Gap Protection?

What is gap protection? If your vehicle is stolen or damaged beyond repair, your auto insurance coverage alone may not pay everything you owe. Insurance typically pays the vehicle’s actual cash value rather than the amount remaining on your loan or lease, which could leave a financial “gap” of thousands of dollars. In addition, if your down payment was less than 20%, you may owe more than your car is worth. These situations can be avoided by purchasing Gap Protection, also known as Gap Insurance.

Here’s a quick example: When you file a claim your insurance company appraises your vehicle. Let’s say they value your vehicle at $10,000, but you still owe your lender $15,000. This leaves you with a “gap” payment of $5,000. You owe more than your vehicle is worth. Without Gap Protection you would remain liable for that $5,000. Now let’s check out some of the benefits of Gap Protection.


  • Helps maintain good credit
  • Covers negative equity
  • Insurance deductible up to $1000 may be included if the amount you owe on the vehicle exceeds your settlement payment
  • GAP is provided for the full term of your loan

If you’re considering the purchase of a Land Rover or pre-owned vehicle from Land Rover Naperville and would like to learn more about the possibility of adding Gap Insurance Protection to your new loan, let a member of our finance team help you make the best decision. Simply click to call us at 630-413-0693 or drop us a line via the Land Rover Naperville contact us page.

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