Manitoba dealers get green light to sell GAP insurance


Manitoba has amended regulations to allow car dealers to provide guaranteed asset protection (GAP) insurance.

The move, announced this week by provincial Finance Minister Cameron Friesen, means more insurance options and better protection for consumers.

“In listening to the industry, we have made these changes to make it easier for people to access insurance coverage that will cover the difference between an auto-insurance claim payment and any outstanding loan or lease obligations,” Friesen said.

When someone finances the purchase or lease of a vehicle and the vehicle gets written off after an accident, the value of their insurance may not be enough to cover the outstanding amount of a loan.

GAP insurance can be purchased to cover this amount, with coverage varying based on the amount of the loan or lease.

The minister noted the regulation changes are now in effect, which allows Manitoba’s auto dealers to sell GAP insurance at the time a consumer purchases or leases a vehicle.

“This change will make a great difference for our members,” said Geoff Sine of the Manitoba Motor Dealers Association.  “It gives them another tool that can be used to better protect their customers in case of an accident and will help customers avoid financial hardship.”

Auto dealers can contact the Insurance Council of Manitoba by email at or call 204-988-6800 to apply for or update restricted agent licenses so they can begin offering the product.