GAP Insurance
Definition for europe 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.
Europe Context
In the europe dealer market, gap insurance operates within the context of EU Consumer Rights Directive and GDPR. Dealerships running Keyloop, incadea, Autoline 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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