Liberty Mutual Gap Coverage
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What is Liberty Mutual Gap Coverage?
Liberty Mutual Gap Coverage (Guaranteed Asset Protection) helps pay the difference between your car's actual cash value and what you still owe on your loan or lease if your vehicle is totaled in a covered accident or stolen and not recovered.
Gap Coverage works with the Comprehensive and Collision coverage on your Liberty Mutual auto policy and is available for eligible new vehicles.
Who qualifies for Liberty Mutual Gap Coverage?
Your vehicle is new
You have a loan or lease
You're adding your car
How Liberty Mutual Gap Coverage works
Gap Coverage works together with your Comprehensive and Collision coverage. If a covered total loss or theft happens, your auto policy pays the car's actual cash value. Gap Coverage then covers the difference between that amount and what you still owe on your loan or lease, minus your deductible.
For example, you bought a car for $20,000 and have $15,000 in payments remaining. If the car is totaled, it's now worth only $10,000. Gap Coverage would cover the $5,000 difference between your remaining payments and the car's actual cash value, minus your deductible. Your deductible still applies, so with a $500 deductible you would receive $4,500.
If my car was a total loss, would I still owe money on it?
Our Total Loss Calculator helps give you an estimate of whether your car may be a total loss under your state's rules and how much you could still owe. Answer a few quick questions to see your free estimate.
What Liberty Mutual Gap Coverage does not cover
Gap Coverage does not cover:
- Amounts already paid under your policy's physical damage coverage
- Overdue loan or lease payments at the time of the loss
- Your deductible, which still applies to a Gap Coverage payment
- Lease charges for excessive use, abnormal wear and tear, or high mileage
- A security deposit your leasing company does not refund
- The cost of extended warranties
- Balances carried over from a previous loan or lease
How much does Liberty Mutual Gap Coverage cost?
Adding Gap Coverage to a car insurance policy typically costs between $2 and $20 per month, according to industry estimates.
Your actual cost with Liberty Mutual will vary based on your vehicle, state, and policy, including the cost of your Comprehensive and Collision coverage.
How do I buy Gap insurance from Liberty Mutual?
You can add Gap Coverage when purchasing a Liberty Mutual auto insurance policy for an eligible new vehicle. Get an online car insurance quote or contact a Liberty Mutual insurance agent to explore your options.
Already a Liberty Mutual customer? You can add Gap Coverage when adding an eligible new vehicle to your existing policy. Coverage must be selected when you add the vehicle and can't be added later.
More information about Gap Coverage
Liberty Mutual Gap Coverage for leased cars
Gap Coverage can help with a lease as well as a loan. If you lease, Gap Coverage helps with the difference between what you owe on the lease and the car's actual cash value after a covered total loss.
Some leasing companies include Gap Coverage in the lease. Make sure to check your lease agreement before you add Gap Coverage, so you're not paying for protection you already have.
Note that Gap Coverage typically does not cover lease charges for excessive use, abnormal wear and tear, or high mileage. It also does not cover a security deposit your leasing company does not refund.
More to know about Gap Coverage with Liberty Mutual
You typically qualify for Gap insurance when all of the following are true:
- Your car is new, meaning it hasn't been titled before in any state
- Your car is a private passenger vehicle, a motor home, or a 4-wheel vehicle with a load capacity of 1,500 pounds or less
- You owe more on your loan or lease than the car's actual cash value
Also note that:
- Gap Coverage has no mileage requirement
- Gap Coverage is not available for all-terrain vehicles (ATVs)
- You add Gap Coverage at the time you add the car to your Liberty Mutual policy
- If you're new to Liberty Mutual, you may still add Gap Coverage if you had coverage with another insurer and your car meets these requirements
Learn more about Gap insurance
Have questions about Gap insurance?
Watch our video for answers to five common questions, including how it works and when you might need it.
Frequently asked questions about Liberty Mutual Gap Coverage
Yes. Liberty Mutual offers optional Gap Coverage for eligible new vehicles financed or leased and insured through Liberty Mutual. Coverage must be added when the eligible vehicle is added to the policy.
Yes. Gap Coverage covers the difference between what you owe on your lease and the car's actual cash value after a covered total loss. Check with your leasing company first, because some leases already include Gap Coverage.
No. Gap Coverage is only for new cars that haven't been titled before in any state.
Yes. If your car is stolen and not recovered, Gap Coverage covers the difference between what you owe on your loan or lease and the car's actual cash value, minus your deductible.
No. Your deductible still applies. For example, if your Gap Coverage payment is $4,000 and your deductible is $500, you would receive $3,500.
No. You can only add Gap Coverage at the time you add the car to your policy.
No. Gap Coverage does not cover lease charges for excessive use, abnormal wear and tear, or high mileage. A security deposit your leasing company does not refund is also not covered.
Gap Coverage is removed automatically if the lender or leasing company is removed from the car.