What is guaranteed asset protection insurance?

Guaranteed asset protection insurance (or GAP Insurance) provides financial protection from certain types of loss that are not covered by standard boat insurance. This optional coverage is available to purchase at the time you complete the financing arrangements for your boat. GAP is designed to cover the unpaid balance of your boat loan in the event of a total loss. GAP covers the difference between the depreciated actual-cash-value of a lost unit (the portion most insurance companies will pay) and the outstanding loan balance (what you still owe) on the boat. Your dealer will provide your information about the coverages, terms and costs of obtaining the insurance so that you may assess the cost and benefits in your situation.