Blog de Derecho de lesiones personales

A Chicago Driver’s Guide to GAP Coverage

As you navigate Chicagoland in a new ride, one line item in your paperwork can make a big difference after a serious crash: GAP coverage (often called “Guaranteed Asset Protection”). If you finance or lease, understanding GAP can save you thousands.

What is GAP?

Cars depreciate fast. If your vehicle is totaled or stolen, your auto insurer pays the actual cash value (ACV)—not what you still owe. GAP steps in to cover all or part of the difference between the ACV check and your loan/lease payoff so you’re not stuck paying for a car you can no longer drive.

A quick example

Loan/lease payoff: $35,000

Insurer’s ACV check: $30,000

"Gap” you’d otherwise owe: $5,000

GAP covers (some or all of) that $5,000—subject to the terms and exclusions in your contract.

Reality check on depreciation: Many new cars lose ~20% of value in the first year. The exact number varies by make/model, trim, miles, and condition—another reason GAP can be smart for new or nearly new vehicles.

Financed vehicles in Illinois: when is GAP a good idea?

GAP is usually optional on loans and not included automatically. It’s worth strong consideration if any of these apply:

• Small down payment (or rolling negative equity from a trade-in)
• Long loan term (you’ll be upside-down longer)
• Higher-depreciation models or heavy mileage
• You’d struggle to write a large check after a total loss

Where to buy:

• Through your auto insurer (often cheapest; added as a “loan/lease payoff” endorsement)
• Through the dealer/lender (convenient, but compare price and terms)

Typical cost:

• Insurer add-on: often tens of dollars per year
• Dealer product: often a one-time few-hundred-dollar charge
• Always compare; don’t double-pay.

Leased vehicles: don’t assume you’re covered

Many leases include a GAP waiver by default (a contract where the lessor waives your remaining deficiency after your insurer pays ACV). But this is not universal. Some leases exclude certain charges, and some dealers sell a separate GAP product.

What To Do: Check your lease for a section titled “GAP Waiver,” “Early Termination,” or “Total Loss.” Confirm:

• Is GAP included? Is it an insurance policy or a waiver?
• Are deductibles covered (sometimes up to a cap)?
• Are late payments, fees, aftermarket add-ons, negative equity, or excess mileage excluded?

What GAP usually doesn’t cover

• Late payments, past-due interest, and certain fees
• Add-ons: service contracts, aftermarket accessories, credit life, etc.
• Negative equity from a trade-in (some contracts cover up to a limit; many don’t)
• Deductible (sometimes covered up to a stated amount—read the fine print)

Preguntas frecuentes

Do leases always include GAP?

No. Many captive finance leases include a GAP waiver, but not all do. Verify in your lease.

Does GAP pay my deductible?

Sometimes. Some contracts cover up to a set amount (e.g., $500–$1,000); others don’t. Check your terms.

How do I buy GAP in Illinois?

Ask your auto insurer for a loan/lease payoff endorsement and compare it to the dealer/lender option. Choose the better price and coverage—and avoid buying both.

How do I file a GAP claim?

With an insurance policy, you’ll typically file through the GAP insurer after your primary claim. With a GAP waiver in a lease, you’ll usually work with the lessor/administrator.

Bottom line

GAP can keep a bad day from becoming a financial crisis. Confirm whether you already have it, what it covers, and what it excludes—before you need it.

Si fueras injured in a Chicago crash or have questions about coverage after a total loss, Briskman Briskman & Greenberg can help you understand your options and protect your rights. Call (312) 222-0010 o contact us online para una consulta gratuita.

This article is general information, not legal advice. Coverage varies by policy/contract—always review your specific documents.