GAP Insurance
Definition for canada automotive professionals.
GAP insurance (Guaranteed Asset Protection) is an F&I product that covers the difference between what a vehicle is worth (actual cash value) and what the customer still owes on their auto loan in the event the vehicle is totaled or stolen. Because vehicles depreciate faster than loans pay down in the first few years, customers can owe more than their car is worth — a situation known as being "underwater" on the loan. GAP insurance is one of the most commonly sold F&I products and can generate $300–$700+ in back-end gross per deal.
Canada Context
In the canada dealer market, gap insurance operates within the context of Provincial dealer licensing (OMVIC, AMVIC, SAAQ, VSA) and Competition Act — transparent pricing. Dealerships running PBS Systems, Quorum DMS, CDK Canada encounter gap insurance in their daily workflow. DealerInt captures the decision layer around gap insurance that your DMS wasn't designed to track.
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See the decisions your DMS doesn\u2019t track
30-day free trial. C$999/store/month. Works with PBS Systems.