Guaranteed Asset Protection Insurance (GAP)

Guaranteed Asset Protection (GAP) insurance protects you from owing more money to your finance company than what your Motor Vehicle Insurance might pay out if an accident, theft or damage means that your vehicle a total loss.

This cash shortfall could occur for several reasons but usually happens because the value of your car after a theft or loss can be less than the amount you still have to repay to your finance company. GAP gives you protection against this type of shortfall.

If you are planning to get a loan to buy your vehicle, you have little or no deposit towards the vehicle, and your repayments will be over 3 or more years, you may want to consider GAP for the protection and peace of mind you’ll get. If you are using a large deposit (for instance 20%-30% or more), then GAP is probably an option that you don’t need to consider unless your vehicle is going to depreciate faster than an average vehicle because you travel an excessive amount of kilometres a year.

GAP example: Filling the finance gap when Marty’s car is stolen

Marty buys a car through Fenda. He strikes a deal with the seller for $25,000 and gets finance for the whole amount because he doesn’t have a deposit. Unfortunately, six months later the car is stolen. His loan balance at the time of the theft is $24,000.

He’s got Provident Motor Vehicle Insurance through Fenda and Provident values the car at $20,000. Provident pays Marty $20,000 (less the policy excess), which leaves a $4,000 shortfall that he still owes the finance company.

If Marty has GAP insurance, the $4,000 would be paid from this policy. Without it, Marty will need to pay the $4,000 from his own pocket.

Example only. See details of what Guaranteed Asset Protection covers you for in the policy document.

The table shows the benefits, options and exclusions for Provident’s GAP policy. If you decide to purchase the GAP policy, you do so with the understanding that you have read and understood the policy you are buying. Please review all the details and policy conditions in the GAP policy document.


Guaranteed Asset Protection (GAP): Covers the shortfall between what you owe a finance company and what is paid out by your insurer.


Cover: $30,000
Special Benefits: $7,000

Cover: $20,000
Special Benefits: $5,000

Cover: $10,000
Special Benefits: $3,000

Cover: $5,000
Special Benefits: Nil


Fenda price: $1,281.43

Fenda price: $854.29

Fenda price: $533.93

Fenda price: $262.86


Guaranteed Asset Protection (GAP)

Primary Benefit

The amount of the Primary Benefit (maximum claim limit) is stated on the Registration Certificate.

Special Benefits

The amount of the Special Benefits applicable to your policy are stated on the Registration Certificate and include those Special Benefits stated on page 1 of the GAP policy document.


Exclusions and General Conditions are stated on pages 2-4 of the GAP policy document.

Policy end date

The policy will end on the earlier of the expiry of the period of cover shown on the Registration Certificate, when the Credit Contract ends, if you no longer have Comprehensive Motor Vehicle Insurance for your vehicle or once a claim has been paid.

Claims procedure

In the event of a claim please follow the Claims Process stated on page 6 of the GAP policy document.


Cover under this policy is subject to your vehicle suffering a Total Loss and a claim being accepted and paid out under your Comprehensive Motor Vehicle Insurance Policy. No claim shall be paid in respect of amounts that were due and owing under the credit contract prior to the Total Loss of the Vehicle.

Cooling off period

You can cancel this Policy within 5 working days after the date on which you purchased the Policy. Please review full details of the cooling off period on page 2 of the GAP policy document.

Fenda insurance products

Mechanical Breakdown Insurance (MBI)
Covers you in the event of a mechanical or electrical vehicle failure.

Credit Contract Indemnity Insurance (CCI)
Covers your loan repayments if you are unable to due to unforeseen circumstances.

Guaranteed Asset Protection Insurance (GAP)
Covers the shortfall between what you owe a finance company and what is paid out by your insurer.

Comprehensive Motor Vehicle Insurance (MVI)
Covers your vehicle for accident, fire and theft.