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Feel protected on every drive with GAP and MRC.

We offer Guaranteed Asset Protection (GAP) and Mechanical Repair Coverage (MRC) to help reduce the financial strain of unexpected vehicle-related expenses. GAP may help cover the difference between what your vehicle is worth and what you still owe if it’s totaled or stolen, while MRC can assist with the cost of covered repairs. These insurance add-ons provide valuable reassurance, helping you stay financially secure if the unexpected happens.

What is GAP insurance?

Guaranteed Asset Protection (GAP) helps cover the difference between what your car is worth and what you still owe if your vehicle is ever totaled or stolen. It fills in the financial “gap” between your auto loan and the vehicle’s current market value.

You may have heard the saying, “a car’s value drops the moment you drive it off the lot.” If you’re financing or leasing, there’s a good chance your loan balance is higher than your vehicle’s depreciated value. In the event of an accident, standard car insurance usually only pays the vehicle’s current value, leaving you responsible for the rest. That’s where GAP insurance steps in.

*Please see plan contract for full coverage details and eligibility requirements.

How does GAP insurance work?

If your vehicle is stolen or declared a total loss, your standard insurance provider will generally cover only the car’s actual cash value, the original price minus depreciation. But if you still owe more than that amount, you could be left paying the difference out of pocket. GAP insurance helps cover that shortfall.

For example, if your car originally cost $30,000 and is totaled just a few months later, your insurance company may determine its current value is $25,000. If you still owe $28,000, your GAP insurance would help cover that $3,000 gap, so you’re not left with a balance on a car you can no longer drive. It’s protection that helps you move forward with less worry.

What is MRC?

Mechanical Repair Coverage (MRC) helps with the unexpected costs of repairs and part replacements that standard auto insurance doesn’t cover. We recommend MRC to anyone looking for extra peace of mind when it comes to unexpected car repairs, especially if you’re driving an older vehicle, have high mileage, or simply want added financial protection until your loan is paid off.

Coverage plans can vary. Some include a wide range of repairs, while others are more limited. The cost depends on factors like your car’s age, mileage, and your chosen level of protection. Our Good Neighbors team is always here to discuss the options and help you find a plan that fits your needs — and your budget.

*Please see plan contract for full coverage details and eligibility requirements.

How does MRC work?

MRC kicks in when your manufacturer’s warranty expires, helping you handle repair costs that arise from everyday wear and tear. Unlike traditional insurance covering accidents, MRC protects against mechanical breakdowns over time.

 

This type of coverage may be beneficial depending on a few key factors:

  • Your vehicle’s reliability. If your car is known for costly repairs or frequent mechanical issues, MRC can provide valuable backup. If it’s a model known for durability, you might not need it right away.
  • The age of your vehicle. Newer cars are usually still under warranty, but as they age and that warranty ends, MRC becomes more critical.
  • Your financial situation. For many of us, a sudden $2,000 repair would throw our budget off its tracks, MRC would then offer a safety net. But if you’re comfortable covering those costs out of pocket, MRC may not be as essential.

Let’s Keep You Moving, Together

At Good Neighbors, our goal is to help you drive forward confidently. Whether it’s GAP insurance, MRC, or a question about your loan, we’re here to help you protect what matters and plan for what’s next.

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