Bmw Gap Insurance: What You Need To Know

BMW offers Guaranteed Auto Protection (GAP) insurance to its customers. This insurance provides coverage for unexpected events, such as accidents, theft, or natural disasters. In the event of a total loss, GAP insurance waives some or all of the difference between the market value assessed by the primary insurance provider and the remaining loan balance. This insurance is available for new, pre-owned, and high-mileage vehicles, offering peace of mind to BMW owners.

BMW GAP insurance covers total loss due to accident, theft, or natural disaster

BMW GAP insurance provides coverage for a range of scenarios, including accidents, theft, and natural disasters such as falling trees or floods. It is important to note that GAP insurance does not cover costs related to vehicle repairs, personal injuries, or other accident-related expenses. However, it ensures that individuals are not left with significant financial burdens if their BMW vehicle is a total loss.

BMW GAP insurance is particularly useful for individuals who have financed their vehicle for an extended period, leased their vehicle, or made a down payment of less than 20%. It is also beneficial for those who plan to put a lot of miles on their BMW, as this can accelerate depreciation. Additionally, GAP insurance may be worth considering for BMW vehicles that are expected to depreciate quickly, such as some luxury or sports models.

BMW owners can purchase GAP insurance from the dealership, their auto insurance company, or financial institutions like banks and credit unions. It is recommended to shop around and compare prices and coverage options before making a decision. By having BMW GAP insurance, individuals can have peace of mind knowing that they are protected financially in case of total loss due to accident, theft, or natural disaster.

GAP insurance waives the difference between market value and loan balance

BMWs, like many other cars, are prone to quick depreciation. This means that the loan balance on a BMW can often exceed the market value of the car. In such cases, if the car is stolen or damaged beyond repair, the insurance payout may not be enough to cover the remaining loan balance. This is where Guaranteed Asset Protection (GAP) insurance comes in.

GAP insurance, sometimes called loan/lease coverage, covers the difference between the insurance payout for a total loss and the remaining loan balance. In other words, it waives the difference between the market value of the car and the loan balance. This can save the car owner from having to pay off the remaining loan amount out of their own pocket.

For example, let's say you bought a BMW for $40,000 and took out a loan for the full amount. If your car is then written off by your insurance provider as a complete loss, your comprehensive policy would pay you the actual cash value (ACV) of the car, which is close to its present market value. However, due to depreciation and other factors, the insurance settlement may be less than the original purchase price, leaving a gap between the ACV and the loan balance.

This is where GAP insurance comes in. If your insurance settlement only paid out $32,000 for the ACV and your loan balance was $40,000, GAP insurance would cover the additional $8,000 needed to meet the total cost of the loan. Without GAP insurance, you would be responsible for paying the difference between the insurance payout and the loan amount.

GAP insurance is typically offered by car dealerships and insurance companies, and it can be added to your existing car insurance policy. It is worth noting that GAP insurance is optional and not required by law. However, some lenders or leasing companies may require it to protect themselves from car owners who walk away from a loan or lease if the car is stolen or totalled.

BMW offers a range of protection products for unexpected setbacks

BMW offers a range of protection products to safeguard your vehicle from unexpected setbacks. One such product is Guaranteed Auto Protection (GAP) insurance. This coverage is designed to protect you financially in the event of a total loss of your vehicle due to an accident, theft, or natural disaster. GAP insurance covers the difference between the assessed market value from your primary insurance provider and the remaining balance on your loan, ensuring that you are not left with a financial burden.

BMW also offers a range of other protection products to provide peace of mind on your journeys. These include Vehicle Service Contracts (VSC), which extend the coverage of your vehicle for up to 7 years or 100,000 miles, with options to customize the level of protection. BMW guarantees quality care with all repairs completed using 100% original BMW parts at authorized repair facilities.

Additionally, BMW offers Lease-End Protection, which waives potential excess wear costs when you return your leased vehicle. This ensures a seamless transition at the end of your lease. BMW also provides Multi-Coverage Protection, allowing you to customize a suite of protection products tailored to your lifestyle.

Other protection products available from BMW include Tire & Wheel Protection, which covers structural damage to your tires and wheels caused by road hazards like potholes or nails. BMW also offers Windshield Protection, which covers the cost of repairing your front windshield if it is chipped or cracked by propelled rocks or other road debris. Paintless Dent Repair is another valuable protection product, providing coverage for removing minor dents and door dings while preserving your BMW's original factory finish.

GAP insurance is part of the BMW Ultimate Protection Program

BMW offers an extensive suite of protection products and packages under the BMW Ultimate Protection Program. One of the key components of this program is Guaranteed Auto Protection (GAP) insurance. This type of coverage provides exceptional protection for unexpected events and setbacks.

In the unfortunate event of a total loss of your BMW due to an accident, theft, or natural disaster, GAP insurance steps in to waive some or all of the financial burden. Specifically, it covers the difference between the assessed market value provided by your primary insurance and the remaining balance on your loan. This ensures that you are not left with a significant financial gap to fill after a total loss.

GAP insurance is particularly valuable given the potential financial implications of a total loss. Without it, you may find yourself responsible for continuing to make loan payments on a vehicle that is no longer in your possession. This can be a significant financial strain, especially if you need to obtain a new vehicle.

As part of the BMW Ultimate Protection Program, GAP insurance offers peace of mind and financial security. It ensures that you are protected from unexpected events and provides a seamless experience, demonstrating BMW's commitment to first-class service and customer satisfaction.

In addition to GAP insurance, the BMW Ultimate Protection Program offers a range of other benefits, including lease-end protection, multi-coverage protection, tire and wheel protection, and windshield protection, among others. These comprehensive protection products showcase BMW's dedication to providing exceptional service and ensuring a worry-free ownership experience for its customers.

BMW offers two ways to initiate a claim

BMW offers Guaranteed Auto Protection (GAP) insurance to its customers. This insurance provides coverage for unexpected events, such as accidents, theft, or natural disasters. In the event of a total loss, GAP insurance waives some or all of the difference between the assessed market value from your primary insurance and the remaining loan balance.

Online Claims Portal

The BMW Premier Motor Insurance Online Claims Portal allows customers to lodge a claim at their own convenience. This method offers a quick and easy way to make a claim on their insurance policy. Before starting the online claim process, customers are advised to have the following details readily available:

• Incident details, including the date and location of the damage, as well as information about any other vehicles involved.
• Other drivers' details, such as their names, addresses, and licence numbers, if applicable.
• Supporting documents or images related to the incident, if available.

Phone Claims

Customers can also initiate a claim by calling the BMW Insurance Customer Contact Centre at Allianz. The contact number for this service is 1300 808 030. A claims consultant will be available to guide customers through the process and request any additional information required. This option is suitable for those who prefer speaking directly to a representative and receiving personalised assistance.

Regardless of the chosen method, BMW aims to make the claims process as straightforward and accessible as possible. By offering both online and phone claim initiation options, BMW provides flexibility and convenience to its customers during what can be a stressful time.

Frequently asked questions