New Legislation Increases Protection Offerings for Floridians

GAP waivers help folks across the country stay protected in the event of a total loss to their financed vehicle. Legislators are making progress toward increasing the protections made available to citizens to help them find an option that works best for them. 

On May 9, 2024, Florida lawmakers furthered the protections for consumer finances by signing a new law that affords additional options for people looking to keep their budgets safe. Florida joins six other trailblazing states as an early adopter of these new options for vehicle owners, adding them to existing statutes. Sen. Jim Boyd and Rep. Chase Tramont championed the bill to give Floridians more power over the policies that could keep them in a better financial position if an adverse event were to occur.  

Prior to this new law, consumers could only get access to a traditional GAP waiver that helps cover all or part of the remaining loan balance of a financed vehicle left over from the primary auto insurance payment when a new vehicle is totaled or stolen. With this new legislation, consumers have more options to protect their finances that fit a variety of situations. 

These new, high-value offerings include protections for excess wear and use on leased vehicles, as well as a portfolio of protections that help offset the loss in vehicle value through depreciation or damage that was repaired. For leases, the new coverage helps consumers cover the expense of exceeding the annual mileage restrictions and charges for excess wear and tear. 

We all know vehicles that have prior damage lose their market value, even if the vehicle was repaired. Legislators realized this market reality by passing legislation that allows for consumers to purchase financial protection products that provide a credit toward loss of value when they trade in their vehicle.

Taken together with GAP waivers, these new optional offerings in Florida help consumers get into their next vehicle in a better financial position than they would have otherwise. As modern technology makes vehicles more expensive, it’s never been more important for consumers to stay prepared in case a financial burden might come their way. By passing this new law, Florida legislators agreed that consumers having improved financial health is a true win-win-win for consumers, auto dealers and lenders.

Consumers need more protection offerings to find a plan that works best for their situation. The Guaranteed Asset Protection Alliance is working to expand these offerings to other states throughout the U.S. Keep an eye on our news page to hear about evolving laws in this area.