$1000
$25,000
$250,000
240 Months
Financial Protection Beyond Insurance
Most customers assume their insurance will pay off their entire loan if their boat is declared a total loss. Unfortunately, that's not always the case.
Insurance typically pays the current market value of the boat at the time of the loss. If the customer owes more than that amount, they may still be responsible for the remaining balance.
Marine GAP Protection helps reduce that financial burden by helping cover the difference between the insurance settlement and the remaining loan balance, subject to the terms and conditions of the agreement.
Unlike traditional insurance, Marine GAP is designed to work alongside a customer's physical damage insurance, providing an added layer of financial protection when it matters most.
Program Details at a Glance
Best For
Customers financing a new or used boat who want added financial protection if their insurance settlement is less than the remaining balance on their loan after a covered total loss.
Program benefits are subject to the terms and conditions of the GAP Addendum.
Why Customers Choose Marine GAP
Marine GAP offers more than financial protection. It provides confidence during one of the most stressful situations a boat owner can experience.
Helps reduce or eliminate the remaining loan balance after a covered total loss, helping avoid unexpected costs.
May help cover the difference between an insurance settlement and the remaining loan balance.
May include reimbursement of the customer's insurance deductible, where available and subject to program limits.
Helps reduce unexpected out-of-pocket expenses after a covered loss, providing greater financial confidence.
Allows customers to enjoy their time on the water knowing they're better protected financially.
A Total Loss Doesn't Have to Become a Financial Loss
When a financed boat is declared a covered total loss, the insurance settlement may not be enough to satisfy the remaining loan balance. Marine GAP Protection helps bridge that financial gap, reducing the financial burden and helping customers move forward with greater confidence.
Review the example to see how Marine GAP Protection may help reduce the remaining balance and lower out-of-pocket costs after a covered total loss.
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Helping Customers Make an Informed Decision
Many customers focus on protecting their boat from unexpected repairs but don't realize a total loss could still leave them responsible for a remaining loan balance. By introducing Marine GAP Protection during the financing process, dealers and agents can help customers understand the financial gap that insurance may not cover and make a more informed purchasing decision.
Because Marine GAP Protection is available only when the financing contract is originally executed, it's important to discuss coverage early in the financing process. Presenting GAP alongside financing and insurance options gives customers the opportunity to understand their protection choices and make an informed decision before completing their purchase.
Frequently Asked Questions
Find answers to common questions about Marine GAP Protection so you can confidently explain its value, benefits, and financial protection to your customers.
What is Marine GAP Protection?
Marine GAP Protection may help cover the difference between your primary insurance settlement and the remaining balance on your boat loan after a covered total loss, subject to the terms, limits, and exclusions of your agreement.
Why would I need Marine GAP?
Boats can depreciate, and your insurance company may pay only the boat’s actual cash value at the time of loss. If that amount is less than what you still owe on your loan, you may be responsible for the remaining balance unless you have GAP protection.
When does Marine GAP apply?
Marine GAP generally applies after a covered total loss, such as unrecovered theft, collision, fire, or another insured peril, when the insurance settlement is not enough to satisfy the scheduled loan payoff.
What types of marine assets may be eligible?
Eligibility varies by program, lender, and state, but Marine GAP may be available for many financed new and pre-owned boats and other qualifying marine assets. Review your agreement for exact eligibility requirements.
Does Marine GAP replace my boat insurance?
No. Marine GAP is not a substitute for primary insurance. You must maintain required physical damage insurance on the covered boat. GAP may help only after your primary insurer determines the boat is a covered total loss and issues a settlement.
Can Marine GAP help with my deductible?
Some Marine GAP programs may include deductible assistance up to a stated limit, where available. Deductible benefits, limits, and availability vary by state and agreement.
How does Marine GAP work? A simple example
You owe $45,000 on your boat loan when the boat is declared a total loss. Your primary insurance settlement is $39,000 after applicable deductions. Without GAP, you may still owe the remaining $6,000 balance. With Marine GAP, that difference may be waived or paid according to your agreement.
Is Marine GAP required?
No. Marine GAP is optional and is not required to obtain financing. It is designed to provide added financial protection if a covered total loss creates a gap between your insurance settlement and loan payoff.
Can I cancel Marine GAP?
No. Marine GAP is optional and is not required to obtain financing. It is designed to provide added financial protection if a covered total loss creates a gap between your insurance settlement and loan payoff.
What should I review before purchasing Marine GAP?
- Covered loss requirements and exclusions
- Maximum claim benefit and any loan-to-value limits
- Whether deductible assistance is included
- Cancellation and refund provisions
- State-specific availability and limitations
Complete Every Boat Sale with Confidence
Equip your dealership with protection solutions that help customers safeguard both their investment and their financial future. From mechanical coverage to Marine GAP Protection, ConnexMarine offers products designed to deliver added confidence long after the sale.