Guaranteed Asset Protection (GAP) insurance is designed to cover the gap of what you owe under your car loan and what your comprehensive car insurer will pay you if your car is written off.
If you do not have comprehensive car insurance then you should not have been sold GAP insurance.
Unfair sales practices were often used in the sale of this product.
Some other names for this product include the following:
Shortfall insurance; and
Motor equity insurance.
Australians have paid over $600 million in GAP insurance. ¹
Some customers can receive over $600 plus interest in GAP insurance refunds.