Guaranteed Asset Protection, commonly called GAP, is designed to help bridge the difference between what your insurance company pays and the remaining balance on your lease or finance contract if your vehicle is declared a total loss due to theft or accidental damage.
Our team at Mercedes-Benz of Laguna Niguel can add GAP to your contract at signing so you can drive with greater confidence from day one.
If your vehicle is deemed a total loss, auto insurance typically pays the vehicle’s current market value minus your deductible. If your outstanding loan or lease balance is higher than that amount, GAP may waive the difference according to your agreement.
Availability, terms, and conditions vary by state and program. Your finance specialist will review details during your appointment.
Scenario: Your vehicle is declared a total loss.
| Insurance settlement (market value)* | $13,000 |
| Outstanding loan or lease balance | $18,500 |
| Difference potentially waived with GAP | $5,500** |
Without GAP, you would be responsible for the remaining balance after the insurance settlement is applied. With GAP, the difference may be waived according to your agreement.
*Market value and settlement methodology are determined by your insurer. **Amounts shown are examples for illustration only and do not reflect your actual terms.
GAP is an optional protection that can only be added at the time you sign your Retail Installment Sale Contract or First Class Lease Agreement. Our finance team will present your options and confirm eligibility.
Mercedes-Benz of Laguna Niguel proudly serves Laguna Niguel, Dana Point, San Clemente, San Juan Capistrano, Ladera Ranch, Laguna Hills, Laguna Woods, Aliso Viejo, Lake Elsinore, and nearby neighborhoods including Monarch Beach, Dana Bluffs, Laguna Woods Village, Nellie Gail Ranch, Kite Hill, Crown Valley, and Terramor Village.
GAP is optional and is not a substitute for primary auto insurance. Coverage may vary by state and lender program. GAP does not cover late fees, past-due amounts, ancillary products, or amounts financed in excess of program limits. GAP may not waive all of the remaining balance owed on your contract.
*Based on your insurer paying a market value amount at the time of loss. The amount waived will not include any amount financed in excess of 120% of the MSRP for new vehicles or 120% of the average retail value for pre-owned vehicles on the contract date, unless a higher percentage is specified in your agreement. Additional adjustments and exclusions may apply. See your GAP agreement for complete terms, limits, and conditions.
Ready to review protection options for your next Mercedes-Benz?
