Mercedes-Benz GAP Insurance Coverage

Guaranteed Asset Protection (GAP) can provide peace of mind in the event your Mercedes‑Benz is declared a total loss due to theft or an accident. GAP may help cover the difference between what your auto insurance provider pays and what you still owe on your finance or lease contract, including your deductible.*

What Does GAP Insurance Do?

If your vehicle is totaled, your insurance company typically pays the market value of the vehicle, minus your deductible. However, if your outstanding loan or lease balance is higher than the insurance settlement, you may be responsible for the remaining balance. GAP insurance helps waive this difference—protecting you from a potentially significant financial burden.

Why Is There a GAP?

Vehicle market value can decline faster than your loan or lease balance—especially early in the term of your agreement. Factors such as supply, demand, and mileage can all affect depreciation. This means that if your vehicle is declared a total loss early in your contract, you may still owe thousands more than what your insurance will cover. GAP helps bridge that difference.

Coverage Example

Insurance Settlement (market value)*	$13,000
Amount Owed on Loan/Lease	$18,500
Difference	$5,500

In this example, you would still owe $5,500 to your lender without GAP. With GAP coverage, that amount may be waived.*

Highlights of GAP Insurance Coverage

Coverage for new and pre-owned vehicles valued up to $100,000
Up to 96-month term limit
Covers up to 120% or 150% of the vehicle’s value
OEM-approved forms (TFS, FMCC) available
Commercial vehicle usage covered
Customized coverage options upon request

Is GAP Insurance Right for You?

Ask yourself: if your Mercedes‑Benz is declared a total loss, would your insurance settlement be enough to cover your loan or lease balance? If not, GAP coverage may be a valuable addition to your financial plan.

When Can You Purchase GAP?

GAP is only available at the time you sign your Retail Finance or Lease Contract at Mercedes-Benz of Foothill Ranch. To learn more or review specific terms and exclusions, ask to see the official GAP agreement.

Questions? Contact our team or call our Finance Department at (949) 328‑8800 for more details.

*Coverage is based on your insurance provider paying the NADA Retail Value at the time of loss. Waived amounts may be subject to limitations. See GAP agreement for full details.