Your auto insurance
does not cover everything.
GAP pays the difference between what you owe and what your insurance company will pay.
In the event your vehicle is deemed a total loss due to an accident or theft, your auto insurance policy will usually only cover the actual cash value or market value of your vehicle less a deductible. This settlement could be significantly less than the amount you owe to your lender or leasing company. The final result is a financial GAP where you must make up the difference, which could mean thousands of dollars out of your pocket.
How GAP Works
Loan Balance After One Year …………… $16,000
Your Vehicle’s Actual Cash Value …….. $11,000
Your Auto Insurance Deductible ………… $1,000
Your Auto Insurance Settlement ………. $10,000
Your Financial GAP …………………………… $6,000
Guaranteed Auto Protection Pays ……… $6,000
Protect Yourself with Guaranteed Auto Protection
Guaranteed Auto Protection protects individuals who finance a new or used vehicle from the financial GAP. During the first few years that you own your vehicle, your loan/lease balance can be higher than the actual value of your vehicle, as a result of depreciation. As your vehicle’s value declines, your loan/lease balance may decline more slowly resulting in a financial gap. If your vehicle were stolen or totaled in an accident, you would be liable to pay the difference between your insurance settlement and your outstanding loan/lease balance.
Guaranteed Auto Protection covers the difference between the actual cash value of your vehicle and the loan/lease balance as of date of loss, less delinquent payments, late charges, accrued interest, refundable service warranty contracts and other related charges.
*Guaranteed Auto Protection will also cover the actual deductible amount stated in your primary insurance policy up to $500 or $1,000 depending on your financial institution’s program limits, in the event of a covered GAP claim. Ask your lender/loan officer for details of the GAP program offered by your lending institution.
Ask your lender/ loan officer for details on how to protect your loan
Guaranteed Auto Protection is a loan/lease deficiency waiver and is not offered as insurance coverage.
The purchase of Guaranteed Auto Protection is voluntary and cannot be required as a condition of credit approval.
This brochure is not a contract. For a complete list of benefits and rules, please refer to your GAP Waiver Agreement
Add GAP Protection to your loan today!