Does GAP Insurance Cover Windshield Replacement?
This article clarifies if GAP insurance covers windshield replacement and explains what it truly protects your vehicle against.
When considering vehicle insurance, a common question arises regarding the scope of specific coverages, particularly whether Guaranteed Asset Protection (GAP) insurance extends to minor repairs like windshield replacement. Understanding the distinct purpose of GAP insurance is essential to clarify this query.
Understanding GAP Insurance Coverage
GAP insurance is an optional coverage designed to protect vehicle owners from financial loss. Its primary function is to cover the “gap” between a vehicle’s actual cash value (ACV) and the outstanding balance on a loan or lease. This coverage becomes relevant if the vehicle is declared a total loss due to an accident, theft, or other covered event. It serves as a financial safeguard against depreciation, ensuring the policyholder is not left with a loan balance for a vehicle they no longer possess.
What GAP Insurance Does Not Cover
GAP insurance does not cover windshield replacement or other minor vehicle damages. This coverage is not designed for repairs, routine maintenance, or partial damage, but rather for instances of total loss or unrecovered theft. Policies typically do not cover deductibles on your primary auto insurance policy, unless specifically stated as an included benefit up to a certain amount, such as $1,000. Other exclusions often include late fees, missed loan payments, extended warranties, or negative equity rolled over from a previous loan. Additionally, GAP insurance generally does not cover financial penalties, interest charges, or the cost of a rental car while your vehicle is being replaced.
How Windshield Damage is Covered
Windshield damage, such as chips or cracks, is typically covered by the comprehensive portion of an auto insurance policy. Comprehensive coverage protects against non-collision incidents like theft, vandalism, falling objects, natural disasters, or impacts from road debris. If a rock hits your windshield, comprehensive coverage would generally help pay for its repair or replacement, minus your deductible.
The application of a deductible for windshield claims varies by policy and state regulations. While a standard comprehensive deductible, often ranging from $100 to $1,000, usually applies to replacements, some policies or states may waive the deductible for repairs, especially for smaller chips. Some insurers also offer specific standalone glass coverage or “full glass coverage” as an add-on, which may cover repairs or replacements with a lower or no deductible.