Answers to the most
common questions

Common Questions

View answers to commonly asked questions about GapDirect.

What is GAP Insurance?

GAP insurance is also referred to as "Debt Cancellation Coverage" and was developed by the finance and insurance industry to protect borrowers who often discovered too late that insurance did not fully pay off their loan/lease when their vehicle was declared a total loss or stolen. A gap or “deficiency balance” is the amount that is still owed to the lender/lessor after the insurance settlement is applied to the loan/lease. GAP insurance pays that remaining unpaid balance subject to certain restrictions, limitations, and conditions fully explained in the policy provisions.

Why does GapDirect cost so much less than through a dealer or lender?

Like most after-market or add-on products, GAP is often considered a profit center by the dealer or lender. The cost of GAP is usually marked up significantly to create extra profits. Do you really want to increase your monthly payment and pay interest on GAP for the life of your loan/lease? Purchasing online and directly from the insurance company dramatically reduces those high markups.

What is the "Critical Period" for GAP?

Depending on down payment, length of loan/lease, and type of vehicle, the first two or three years is typically when you are most likely to owe more than what insurance will pay for a total loss or theft of your vehicle.

What term options are available for GapDirect coverage?

GapDirect is available for terms of two or three years to cover the "Critical Period". You may be eligible to purchase coverage for an additional two or three year period after your initial term expires.

Will GAP insurance pay my deductible?

Yes, if you have a GAP loss, your deductible will be included up to $1,000 (deductible coverage is not available for LEASES in Illinois per state regulation).

Can I buy GAP Insurance after I purchase my vehicle?

Yes, you can buy GapDirect at any time as long as it’s before a loss occurs.

Which types of vehicles are eligible and which are not eligible?

All personal motorized vehicles licensed for street use including autos, vans, pickup trucks (up to 1-ton capacity), and motorcycles are permitted. The following types of vehicles are not eligible for GAP coverage: Commercial vehicles, vehicles for rent or hire, RV's, pickup trucks and vans with more than 1-ton cargo capacity, vehicles not licensed for street use, emergency vehicles, vehicles used for racing, speed contest or exhibition of any kind, grey market vehicles, kit cars, dune buggies, Aston Martin, Bentley, Bugatti, Ferrari, Lamborghini, Lotus, Maserati, Maybach, Rolls Royce, Porsche, Tesla, and Corvette.

What type of loans/leases are not eligible for GapDirect?

Loans/leases with a balloon payment; original term that exceeds seventy two (72) months; loans/leases not fully amortized with equal monthly payments over the term of the loan/lease; revolving lines of credit; home equity lines of credit; open-end lines of credit; or loans with an AMOUNT FINANCED or leases with an ADJUSTED CAPITALIZED COST exceeding $75,000. The vehicle and lender/lessor listed in the GapDirect application and policy must be linked together by way of a security interest in that vehicle.

May I purchase GapDirect through my dealer, agent, or lender?

No, GapDirect is only available to consumers using this website and may not be purchased through any third party.

Will I be required to buy auto insurance in order to purchase GAP?

No, GapDirect is a stand-alone program and you are not required to purchase any other product in order to be eligible for coverage.

How soon does GAP coverage start?

GAP coverage starts as soon as you complete the PURCHASE process on this website.

May I purchase GAP for a loan with a Private Party like a friend or relative?

No, GapDirect is available only for loans/leases with a commercial lender such as a finance company, bank or credit union.

What are the payment options for buying GAP through GapDirect?

Because of the low price of GapDirect, the one-time payment can be made with most major credit cards. The one-time payment means you can avoid financing GAP over the life of the loan/lease, eliminating a higher monthly payment, interest, and the expensive GAP from a dealer or lender.

What is the most GapDirect will pay?

GapDirect will pay the difference between the actual cash value of your vehicle as determined by the responsible insurance carrier for your total loss or stolen vehicle and what you still owe up to $25,000, subject to policy provisions (deductible coverage is not available for LEASES in Illinois per state regulation).

What will GapDirect not pay?

Your pay-off balance is determined at the time of loss and is based on the loan's/lease's original repayment schedule. Any delinquent payments, deferred payments, or fees added to the loan after inception would not be covered. GapDirect also does not cover that portion of the original loan amount that exceeded 115% of the MSRP sticker on new vehicles or 115% of the Retail value listed in the Kelley Blue Book or similar guide on used vehicles at the time of purchase.

FOR EXAMPLE: If the MSRP sticker price is $30,000 GapDirect will insure your "Amount Financed" up to $34,500 ($30,000 X 115% = $34,500). Any amount financed over $34,500 would be excluded from coverage.

May I cancel this coverage?

Yes, you may cancel GapDirect at any time by mailing your request to the insurance company. The cancellation date will be the date we receive your written request or a future date if requested. An unearned premium refund will be returned to you in accordance with policy provisions.

Is my GapDirect policy transferable to a new loan/lease if I refinance or buy a new vehicle?

No, your GapDirect policy applies only to the loan/lease in force and identified in the application at the time of purchase. If you refinance or buy a new vehicle, you may consider cancelling your current policy and purchasing a new one. However, if your existing loan/lease is purchased or transferred to another lender/lessor and the terms remain exactly the same as shown on your policy, then your new lender/lessor would automatically become the lender/lessor of record for your policy.

How do I file a claim?

If you or your lender/lessor receive a total loss insurance settlement and you still owe a balance on your loan or lease, contact Western General Insurance Company by telephone for instructions of how to file a claim. Toll Free: 1-877-448-4455

Who receives the GAP benefit payment?

GAP benefits are paid directly to your lender/lessor on your behalf.

What happens if I don’t have collision, vandalism, or theft insurance on my vehicle?

GAP benefits apply even if you don’t have collision, vandalism, or theft insurance. Western General Insurance Company will inspect your vehicle to determine if it is a total loss, and then establish your vehicle’s retail Actual Cash Value (ACV) using either Kelley Blue Book or another similar guide. If the ACV is lower than your loan's scheduled loan balance or lease pay-off at the time of loss, then you have a GAP or deficiency balance and that amount will be considered your loss amount and paid directly to your lender/lessor, subject to the policy restrictions, limitations and conditions.

What are the terms and conditions for purchase?

You may download and view the Terms of Agreement here.

Have more questions?

Send us an e-mail at with your question(s) or contact us by telephone during regular business hours between 8:30 AM to 5:00 PM, Pacific Time, Monday-Friday at 1-877-448-4455. Please include your state of residence or GapDirect policy number when contacting us.

Security & Value starting at $185

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