GAP Keeps You in the Driver's Seat
Imagine if you bought a new vehicle this year and totaled it next year? Chances are you would have to pay out of pocket for the difference between your loan balance and the replacement value of the vehicle. In most circumstances, a vehicle loses value the moment it is driven off of the lot and the value rapidly declines in the first few years of ownership. This is what can create a coverage gap.
That’s where Guaranteed Asset Protection (GAP) can be a lifesaver. The actual cash value of your vehicle that is determined by your primary insurance carrier could be less than the actual balance you owe on your loan. In the event of a total loss or theft, GAP waives the difference between your outstanding loan balance and the actual cash value (ACV) of the vehicle up to the maximum LTV%. GAP may also cover up to $1000 of your deductible if there is a “gap” after the primary insurance settlement is paid. The deductible is covered as part of the deficiency balance.
For just a few dollars per month, you can protect yourself against the unexpected expense of a coverage gap. Get Guaranteed Asset Protection (GAP) when you finance your vehicle loan and have the payments rolled into your monthly loan payment.
Go to main navigation