What does GAP cover?
GAP covers you from the difference between your outstanding loan or lease balance and the actual cash value of the vehicle (primary insurance company settlement). GAP also covers up to $1,000 of your deductible if there is a "gap" after the primary insurance settlement is paid. This is covered as part of the deficiency balance and is not paid directly to you.
Key Features Include:
- Low cost protections
- Eliminates the out-of-pocket expense for the remaining loan balance after loss settlement
- Helps you avoid financial hardship and afford a replacement vehicle
- Prevents deficiency balance from being added to new loan
- Helps protect your credit rating
|
| Example: |
| Vehicle Actual Cash Value |
$11,000 |
| Insurance Deductible |
$ 500 |
| Balance |
$10,500 |
| Outstanding Loan Balance |
$15,000 |
| Insurance Settlement (Above) |
$10,500 |
| Remaining Balance |
$ 4,500 |
| Your GAP Amount |
$ 4,500 |
|