Overview
Gap insurance (Guaranteed Asset Protection) is not offered with auto refinancing through Upstart’s platform. If you had gap insurance on your previous loan, it will not transfer when you refinance.
Upstart does not require gap insurance for auto refinancing or auto secured personal loans.
If you want to maintain gap coverage, you may need to purchase a new policy separately. For questions regarding coverage of your current or previous gap coverage, please reach out to the administrator listed on your policy or contract
What Is Gap Insurance?
Gap insurance is an optional coverage that helps cover the difference (or “gap”) between:
✔ The amount you owe on your auto loan
✔ The actual cash value (ACV) of your vehicle if it’s declared a total loss due to an accident or theft
Since standard auto insurance policies only cover the current market value of a car (which depreciates over time), gap insurance helps protect you from paying out of pocket for the remaining loan balance if your vehicle’s value is lower than what you owe.
When Can Gap Insurance be Most Valuable?
Gap insurance is usually beneficial earlier in the life of your loan, when depreciation is highest. It may be worth considering if:
✔ You made a small or no down payment when purchasing the vehicle.
✔ You have a long loan term, meaning it will take longer to build equity in your car.
✔ Your vehicle is newer and depreciates quickly.
✔ You drive high mileage, which can reduce the resale value faster.
What to Do If You Want to Learn More about Gap Coverage
If you want to learn more about gap coverage and if it is right for your situation, you can:
✔ Contact a licensed insurance provider.
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