What is Guaranteed Asset Protection?
GAP is program that we offer for your new or used vehicle loan. This financial protection covers the difference in the balance on a car and its declared value, as determined by your primary insurance carrier, in the event that it is damaged beyond repair or stolen and never recovered. GAP is a supplemental coverage that enhances, rather than replaces, your standard comprehensive, collision, or liability coverage.
Benefits of GAP Insurance:
- GAP is inexpensive.
- Filing a claim is quick and easy.
- Enrollment is easy and coverage begins immediately.
- Coverage is offered for a variety of vehicle types, new and used.
- Up to $1,000 of your insurance deductible is covered, as part of the deficiency balance.
How GAP Works:
GAP will waive the difference between what the insurance company paid (ACV-actual cash value) and the loan amount, if the loan amount is higher.
Insurance Settlement
Vehicle ACV $11,000
Deductible $500
Insurance Settlement $10,500
Loan Settlement
Outstanding Loan Balance $15,000
Insurance Settlement $10,500
Loan Balance After Insurance Settlement $4,500
In this example, GAP will pay $4,500 to cover the remaining loan balance deficiency.