GAP Insurance for Boat Buyers

Protect Your Wallet When the Unexpected Happens

If your boat is totaled or stolen, GAP (Guaranteed Asset Protection) Insurance can cover the difference between your loan balance and your boat’s actual cash value paid by your primary insurer.

Why GAP Insurance Matters

  • Covers the “depreciation gap.” New boats can depreciate quickly; GAP helps cover the shortfall if your insurance payout isn’t enough to pay off your loan.

  • Avoid out-of-pocket surprises. Prevent thousands in unexpected costs after a total loss.

  • Rolling the cost into financing. Add GAP to your loan so you get protection now with a low monthly impact.

  • Peace of mind from day one. Coverage typically starts at purchase and lasts through your early, higher-balance years.

  • Helps protect your credit. Avoid carrying a balance on a boat you can no longer use.

How It Works (Simple Example)

  1. Original price: $80,000

  2. Down payment (10%): $8,000 → Amount financed: $72,000

  3. After 18 months: Loan balance is $65,000

  4. Total loss payout from primary insurer (ACV): $52,000

  5. Your “gap”: $65,000 − $52,000 = $13,000
    GAP Insurance can cover that $13,000 shortfall (policy limits/terms apply).

What’s Typically Covered

  • The difference between your primary insurance payout and your loan payoff after a total loss.

  • Some policies may also cover up to a set amount of your primary insurer deductible.

What’s Usually Not Covered

  • Past-due payments, late fees, or add-ons outside the contract

  • Engine/mechanical repairs (that’s a warranty/insurance matter)

  • Diminished value after partial losses

(Always review your specific policy for exact terms, limits, and exclusions.)

Who Benefits Most

  • Low down payment buyers (under 20%)

  • Longer loan terms or higher interest rates

  • High-depreciation models and first-time boat owners

  • Anyone wanting extra financial protection in the first years

Add GAP to Your Financing

We can include GAP Insurance right in your loan package—one signature, seamless protection, and no separate monthly bill.

FAQs

Is GAP required?
No, but lenders and owners often choose it for protection during high-depreciation years.

Does GAP replace my boat insurance?
No. Primary physical damage insurance comes first; GAP only addresses the remaining loan balance shortfall after a total loss.

Can I cancel GAP?
Policies often allow cancellation; pro-rated refunds may apply per terms.

Does GAP cover my deductible?
Some plans do, up to a limit. Check your policy details.