When you purchase or lease a new or used car,GAP insurance can be a smart addition to your auto financing package. Phoenix American Administrators offers GAP insurance plans to protect drivers across the U.S.
This comprehensive guide will explain everything you need to know about Phoenix American GAP coverage including:
- What is GAP insurance?
- How Phoenix American GAP works
- Coverages and exclusions
- Cost of GAP insurance
- How to file a GAP claim
- Company background
- Why choose Phoenix American?
What is GAP Insurance?
GAP insurance stands for “guaranteed auto protection”. It is an optional add-on coverage you can get when financing or leasing a vehicle.
GAP insurance covers the difference between what your car insurance will pay if your vehicle is totaled and what you still owe on your loan/lease.
For example, let’s say you:
- Owe $18,000 on your auto loan
- Your vehicle is totaled in an accident
- Your insurance company determines the actual cash value is $15,000
- They pay this $15,000 settlement to the lender
You now have a $3,000 deficiency balance left owning. GAP insurance would cover this difference so you don’t end up making payments on a car you no longer have.
Without GAP protection, you’d be stuck with this potentially thousands of dollars auto loan balance.
How Phoenix American GAP Insurance Works
Phoenix American is a leading administrator of GAP insurance programs. Here is an overview of how their GAP product works:
- You add GAP when purchasing/leasing a new or used vehicle through an auto dealer
- It adds a small amount to your monthly car payment
- In the event of a total loss, Phoenix American pays the deficiency balance between the value of your vehicle and what you owe
- Coverage is for the length of your auto loan or lease term
- Maximum benefit is $50,000
Phoenix American GAP also includes up to $1,000 to cover your primary auto insurance deductible in the event of a total loss.
GAP insurance through Phoenix American only covers the outstanding loan/lease balance. It does not pay for any extras like late fees, delinquent payments, taxes, etc.
Phoenix American GAP Coverages and Exclusions
Phoenix American’s GAP plan has the following notable inclusions and exclusions:
- Deficiency balance between ACV and loan balance
- Up to $50,000 max benefit
- $1,000 for primary auto insurance deductible
- Covers theft, accidents, natural disasters, etc
- Any items added into the loan amount like warranties, insurance, etc
- Delinquent payments, late fees, etc
- Leases exceeding 60 months
- Vehicles used for commercial purposes
Be sure to read the full GAP policy document so you understand exactly what is and isn’t covered.
How Much Does Phoenix American GAP Insurance Cost?
The cost of GAP protection through Phoenix American will depend on factors like:
- The value of your vehicle
- The length and amount of your loan/lease
- Your location
- The auto dealer you purchase through
Typically, you can expect to pay $300 to $700 for a Phoenix American GAP policy. It is added into your financing and you pay a small amount with each monthly payment.
On a 4-year, $20,000 loan, GAP may cost $12-$15 extra per month. But it protects you from owing thousands if the vehicle is totaled. For most drivers, this minimal monthly cost is worth the peace of mind.
How to File a Phoenix American GAP Insurance Claim
If your vehicle is totaled and you need to use your GAP coverage, here is the process:
Report the total loss to your primary auto insurance company. Make sure the claim is fully settled.
Contact the GAP administrator Phoenix American at 1-800-325-1525 to start your claim.
Submit the required proof of loss documents:
- Settlement letter from your insurance company
- Copy of your loan/lease agreement
- Police report in the event of theft
Phoenix American will review your claim, verify details with the lender, and issue payment for the deficiency directly to the leasing/financing company.
You get written confirmation when the claim is closed with a $0 balance owed.
Phoenix American aims to process GAP claims within 30 days of receiving all necessary paperwork from you.
Phoenix American Administrators Company Background
Phoenix American Administrators Inc. has been in business since 1987 specializing in vehicle service contracts and GAP insurance. They are based in Coraopolis, PA with administrators nationwide.
Key facts about Phoenix American:
- Part of the Brown & Brown insurance group, which wrote over $2 billion in premiums in 2021
- Rated “A+” by the Better Business Bureau with accreditation
- Administers products in all 50 states
- Has an established network of auto dealers who offer their GAP plans
- Over 1.4 million drivers insured through Phoenix American GAP programs
Phoenix American is a reputable, national administrator with financial backing and a history of dependable claims payments.
Why Choose Phoenix American for GAP Insurance?
There are many good reasons to choose Phoenix American Administrators for GAP coverage:
✅ Trusted reputation – Over 35 years in business and strong financial backing
✅ Protection from a major auto insurer – Phoenix American GAP plans are insured by Nationwide
✅ Covers your deductible – Get up to $1,000 toward your primary auto insurance deductible
✅ Convenient purchase process – Add to your auto financing at the dealership
✅ Affordable monthly cost – Pay a small amount with your existing car payment
✅ Easy claims process – Quick turnaround and direct payment to your lender
One of the worst feelings is owing thousands for a vehicle you no longer have after an accident or theft. Phoenix American GAP insurance provides an affordable way to avoid this. Protect your investment and financial security with their guaranteed auto protection.
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