Guaranteed Auto Protection (GAP) Insurance Program from Diversified Insurance Facilities
Diversified Insurance Facilities offers a specialized Guaranteed Auto Protection (GAP) program built for independent agents and brokers placing business for auto dealerships, leasing companies, and finance sources. The program fills the gap between a primary insurer’s actual cash value settlement and the remaining loan or lease balance when a vehicle is a total loss. Coverage is administered through the Auto Trac System and backed by reputable markets, including Markel Insurance in many placements.
Ideal Accounts and Appetite
This program is a strong fit for agents representing:
- Franchised new and used auto dealerships that want to offer optional GAP at point-of-sale
- Leasing companies and captive/non-captive lessors seeking protection for leased vehicles
- Retail finance contracts where borrowers may face a shortfall after a total loss
- Auto lenders and finance companies wanting to include GAP in protection packages
Typical accounts are retail installment contracts and leases placed through franchised dealers. The program is generally not intended for non-franchised or wholesale salvage operations; check with Diversified underwriters for exceptions.
Coverage Highlights and Advantages
- Pays 100% of the difference between the primary insurer’s payout (actual cash value) and the outstanding loan or lease balance
- Available for both new and used vehicles sold or leased through franchised dealerships
- Supports retail finance contracts and leased-vehicle programs
- Administered through the Auto Trac System platform for streamlined enrollment and claims handling
- Placement access to established specialty markets (varies by state and risk)
Underwriting Notes and Minimum Premiums
Underwriting is handled with flexibility across multiple markets. Minimum premiums and specific terms vary by state, vehicle type, and deal structure. Diversified Insurance Facilities works with agents to identify the best admitted or non-admitted market for each account and can often provide tailored solutions to match a client’s program design.
Territories and Availability
The GAP program is available in most U.S. states. Representative availability includes: AK, AL, AR, AZ, CA, CO, CT, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY and DC. Some placements can be written on an admitted basis depending on state filing requirements and carrier appetite.
Why Work With Diversified Insurance Facilities?
As a wholesale broker focused on niche auto-related programs, Diversified Insurance Facilities gives agents access to competitive GAP solutions and multiple market options. The firm’s relationships with program administrators and carriers—plus experience with dealer and leasing workflows—helps speed underwriting and placement. Diversified can assist with policy form review, minimum premium guidance, and routing accounts to the most appropriate admitted or non-admitted market.
Example scenarios
- You have a franchised dealer client that wants to offer optional GAP to finance customers at the time of sale — Diversified can place GAP for both new and used retail contracts.
- You represent a regional leasing company looking to reduce post-total-loss exposure for lessees — the program can be tailored for lease schedules and finance terms.