What is GAP Insurance?? - Guaranteed Auto Protection, or GAP, offers protection against financial liability when you finance a new or used vehicle. GAP protects against financial loss in the event that your vehicle is totaled (damaged beyond repair) or stolen.
What Does the GAP Waiver Cover?
During the first few years that you own your vehicle, your loan/lease balance could be higher than the actual value of the vehicle. The GAP waiver covers the difference between the actual cash value of the vehicle and the outstanding loan/lease balance at the time of a loss.
Here's a clearer example:
You take out a loan in the amount of $18,000. After one-year, the vehicle is involved in an accident in which the vehicle is damaged beyond repair. The insurance company offers you a $10,000 settlement based on the blue book price of the vehicle. You still owe $15,000 on the original loan. Without GAP coverage, you would be required to pay $5000 to pay off the remaining balance on the loan.
|Original Loan Amount||$18,000.00|
Ask one of our Lending Specialists if GAP will benefit you!