GAP Insurance

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.

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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!

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