Leasing A Ford: Gap Insurance Included?

Ford does offer Guaranteed Asset Protection (GAP) insurance, which covers the difference between the actual cash value (ACV) of your car and what you owe on your loan or lease if your car is deemed a total loss. GAP insurance is included with Ford leases and can be purchased at the time of buying a new or used vehicle. It is also available through third-party insurance companies and may be included in lease agreements at no additional cost.

Ford lease insurance includes GAP coverage if the car is stolen or damaged beyond repair

GAP insurance is an optional add-on to your car insurance policy that covers the difference between what a leased or financed car is worth and how much the driver owes. This type of insurance is useful if you feel your car's value will diminish quickly or if you are worried about its resale value.

Ford lease insurance does include GAP coverage in the event that your car is stolen or damaged beyond repair. This is included in the Ford Red Carpet Lease, which offers lower monthly payments, no trade-in worries, lease-end flexibility, and the opportunity to drive the newest Ford models.

GAP coverage is also available for both new and used vehicles for up to 96 months. It covers up to $1,000 towards your deductible (except in Alaska) and offers personal-use vehicles (up to 12,500 lbs GVWR) with financing of up to $125,000.

In addition to GAP coverage, Ford offers WearCare, which protects you from unexpected excess wear and use charges, and Ford Insure, which rewards you for safe driving with potential discounts of up to 40% off your policy.

GAP insurance covers the difference between the car's value and the loan balance

Guaranteed Auto Protection (GAP) insurance is an optional add-on to your car insurance policy that covers the difference between the value of your car and the balance of your loan or lease in the event of a total loss. This means that if your car is stolen or written off in an accident, GAP insurance will cover the "gap" between the amount your insurance company pays out, based on the car's value, and the amount you still owe to the lender.

For example, imagine you bought a car two years ago for $20,000, and you still owe $20,000 on finance. Due to depreciation, your car's value has decreased to $15,000. If your car is completely written off, your insurance company will pay out $15,000, leaving you $5,000 short of what you owe. GAP insurance would cover this $5,000 difference, meaning you wouldn't have to pay out of pocket for a car you no longer own.

GAP insurance is particularly useful if you owe more than your car is worth, for example, if you didn't make a down payment or if you chose a long loan term. It is also often required for leased vehicles.

Ford does offer GAP insurance, which can be added to a new car or truck purchase. This insurance covers the difference between the accurate market value of your car and the balance of the loan. It is recommended for those who applied less than a 20% down payment, leased a car, bought a vehicle that depreciates quicker than average, rolled over negative equity from a previous vehicle, or scheduled a payment plan for more than 60 months.

GAP insurance is available for both new and used vehicles

Ford offers two types of GAP insurance: GAPCoverage and GAPAdvantage. GAPCoverage offers protection for up to 96 months and covers personal-use vehicles (up to 12,500 lbs GVWR) with financing up to $125,000. It also includes up to $1,000 towards your deductible (except in Alaska). GAPAdvantage includes all the features of GAPCoverage, plus an additional $1,000 towards the cost of a replacement vehicle from your local dealer.

It is important to note that Ford GAP insurance is only available at the time of vehicle purchase. Additionally, it may not cover your insurance deductible, and there are certain exclusions to the coverage. For example, GAP insurance does not provide benefits if the loss or damage occurs due to fraud, intentional damage, outside the US or Canada, or if the vehicle is licensed, registered, or titled in a business name.

When considering whether to purchase GAP insurance, it is essential to review the terms and conditions carefully to understand the specific coverage and exclusions.

GAP insurance may be included automatically when leasing a Ford car

When leasing a Ford car, GAP insurance may be included automatically. GAP insurance is designed to protect your investment by covering the difference between the insurance settlement and the amount owed on the contract. This can be especially useful if your car is deemed a total loss or is stolen. In such cases, GAP insurance can help pay the difference between what you owe on your lease and your vehicle's actual cash value.

GAP insurance is generally required when leasing a car. Some dealerships may push for you to purchase GAP insurance, as it is automatically included when you lease a car. However, it is worth noting that GAP insurance may also be purchased separately from your insurance company or a specialised GAP insurance company.

There are two types of GAP coverage offered by Ford: GAPCoverage and GAPAdvantage. GAPCoverage is available for new and used vehicles for up to 96 months and offers protection for personal-use vehicles (up to 12,500 lbs GVWR) with financing up to $125,000. It also includes up to $1,000 towards your deductible (except in Alaska). GAPAdvantage includes all the features of GAPCoverage, plus an additional $1,000 towards the cost of a replacement vehicle from your local dealer.

It is important to note that GAP insurance does not provide benefits in all cases. For example, it will not provide coverage if the loss or damage occurs due to fraud, intentional damage by the policyholder, or outside the US or Canada.

Overall, GAP insurance is a valuable addition to your leasing agreement, providing peace of mind and financial protection in the event of a total loss or theft of your leased Ford vehicle.

Ford offers two types of GAP coverage: GAPCoverage and GAPAdvantage

GAPAdvantage builds upon the benefits of GAPCoverage by providing additional support to get you back on the road. It includes all the features of GAPCoverage, plus an extra $1,000 credit towards the cost of a replacement vehicle from your local dealer. This can be particularly useful if you need to get back on the road quickly after a total loss or theft of your vehicle.

Both GAPCoverage and GAPAdvantage are only available at the time of purchasing a new Ford vehicle and are subject to certain program terms and exclusions. It's important to carefully review the limitations outlined in the GAP addendum to understand the specific coverage provided by each option.

Frequently asked questions