What is GPP Insurance?

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Asked April 27, 2011

2 Answers


GPP stands for Guaranteed Protection Plan, and is a specific type of insurance, generally offered by a third party company such as a car alarm installer. Many people confuse GPP coverage with GAP coverage, but they have distinctly different applications. GPP insurance will only pay the deductible of your insurance policy if your vehicle is stolen and a GPP policy is in effect, up to a standard limit of around $2500 or less.

GAP Insurance, or Guaranteed Automobile Protection, if typically required by a car lot or dealership. This type of coverage assures the lien holder of collecting the full amount of the losn even if the vehicle is totaled or stolen, including the difference between the current cash value of the vehicle and the actual amount still owed. GAP insurance pays directly to the lender, bypassing you completely. It is not intended to provide you with any sort of gain or restitution, simply to protect you from having a large outstanding balance even after your regular insurance policy has paid off the claim.

In short, GPP is meant to pay for your deductible if the car is stolen while an insured alarm is active, and GAP is used to pay the difference between what you owe and the payout value on a totaled or stolen vehicle. Before purchasing the coverage, make sure that you know what you are purchasing, or you could find out that you own insurance which will not help you when things come down to the wire.

Answered August 1, 2011 by Anonymous


GPP stands for Guaranteed Protection Plan, and is typically offered by auto alarm companies. Under GPP coverage, you are typically reimbursed for the amount of your deductible if the vehicle is stolen and the alarm system was activated. GPP coverage may also be available from some specialty insurance providers to ensure a cash-value payout on claims.

More commonly, people refer to GPP coverage when they are actually talking about GAP, or Guaranteed Auto Protection, insurance. This type of insurance is required by many dealerships, and ensures that the full value of your existing auto loan will be paid in the event that the car is totaled. When a GAP claim is filed, the payout goes to the named entity for the coverage, usually the dealership or finance company. Thia is in contrast to GPP coverage, which is generally written by a third party insurer and pays directly to the you as the named owner of the policy.

Check the spelling carefully to make sure you are talking about a clause in your auto insurance policy and not a stipulation of protection offered by another company. If you are still in doubt about the nature of the reference, call your insurance company and request an explanation of that entry.

Answered April 27, 2011 by Anonymous

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