GPP stands for Guaranteed Protection Plan. It’s a type of insurance typically offered by a third party company – like any company that doesn’t specialize in car insurance. Some car alarm installers, for example, offer GPP insurance.
It’s easy to confuse GPP coverage with GAP insurance. However, the two are used in different ways.
How GPP Insurance Works
Typically, GPP insurance covers unique situations. A car alarm installer might offer GPP insurance that protects your vehicle in the event it gets stolen. The company is so certain about the effectiveness of its car alarms that it guarantees your car won’t be stolen – and the company is willing to reinforce that promise with an insurance policy.
Typically, GPP coverage is significantly less than an ordinary insurance policy. The company might only agree to cover up to $2500 of loss, for example, while your ordinary insurance policy covers the rest.
In many cases, GPP coverage is designed to cover your deductible. Most deductibles are between $500 and $2,500, so most GPP insurance policies will cover this amount in the event of an incident.
Typically, companies – like car alarm companies – will advertise a Guaranteed Protection Plan that covers up to $2,500. In reality, the company will only pay you $2,500 if your deductible is $2,500. Otherwise, they’ll pay whatever your deductible is – whether it’s $500, $1,500, or $2,500. In other words, you’re unlikely to receive $2,500 in compensation if your deductible is $500.
What’s the Difference Between GPP Insurance and GAP Insurance?
GAP insurance is a different type of insurance. Guaranteed Automobile Protection (GAP) insurance is typically required by a car lot or dealership. GAP insurance may be required if you’re leasing a vehicle: it protects the owner of the vehicle in the event of damage or theft of the vehicle – including the difference between the current cash value of the vehicle and the amount still owed by the driver.
GAP insurance is paid directly to the lender, and it bypasses you (the borrower or driver) entirely. GAP Insurance is not designed to provide you with any gain or compensation in the event of theft or unexpected events. It’s simply to protect you from having a large outstanding balance after your regular insurance policy has covered the value of the vehicle.
Without GAP insurance, you might be involved in a vehicle incident and receive compensation from your insurance company, but still find yourself owing an enormous amount of money. In this situation, you might still owe money to the bank, the financing company, or the lessor, for example.
In summary, GPP insurance policies are meant to pay for your deductible, while GAP insurance policies are meant to pay the difference between what you owe and the payment value on a totaled or stolen vehicle.
How to Qualify for Guaranteed Protection Plan
The only time you really see a Guaranteed Protection Plans (GPP) is from a car alarm company. These policies all work in a similar way. Basically, if you have a properly-installed car alarm system, and your car is stolen with that alarm system in place, then the car alarm company will pay your deductible.
It’s a great way to separate reputable car alarm companies from the rest of the industry. Any good car alarm company is confident that it’s alarm cannot be disabled – so they’ll be happy to provide a Guaranteed Protection Plan.
Policies vary between car alarm companies. Car alarm company Viper, for example, has a year-long GPP they describe as “the most generous in the industry.” However, to qualify for that GPP, you’ll need to meet specific qualifications, including:
- The car alarm system was sold, installed, and serviced by an authorized dealer
- The car alarm system remains in the car in which it was originally installed, under the ownership of the original owner
- The car alarm window decal must be installed at the time of installation
- The GPP claim must be made within 60 to 90 days after you settle the claim with your insurance company
- The theft occurred within one year of purchasing and installing the car alarm system
- The vehicle was stolen due to the failure of the alarm system
- The car alarm was not deactivated or disarmed for any reason prior to the theft
- You must attach a police report to your GPP claim
- The vehicle must be insured against theft at the time the vehicle was stolen, and your insurance company must accept and pay the claim
Ultimately, if you installed an authorized car alarm system, and your car was stolen within a year of installation, and your system was active at the time of theft, then you should be able to file a claim on your Guaranteed Protection Plan (GPP insurance). Otherwise, it’s unlikely for most car owners to ever file a GPP claim.
Ultimately, Guaranteed Protection Plans are offered by some car alarm installation companies. These companies are so confident in the effectiveness of their products that they’re willing to insure your vehicle against theft – or at least, they’ll pay your deductible if your car gets stolen within one year of installing their car alarm system.
GPP insurance is different from GAP insurance, and neither types of insurance are a replacement for regular insurance.