Gap Insurance – Guaranteed Auto Protection For Your Vehicle
What is Gap Insurance?
Why do I need GAP Insurance?
How Does GAP Insurance Works?
What are the benefits of GAP Insurance?
- Pays the deductible up to $1,000
- Pays a deficiency balance up to $50,000
- Coverage for loan amounts up to 150% of MSRP (new)/NADA retail (used)
- Eliminates the liability of excessive depreciation or negative equity in the event of a total loss.
- Clears the loan balance allowing customers to start fresh with a new vehicle purchase
- Cancel-able and refundable – like service contracts, customer can receive a prorated sum if they trade or sell the vehicle
- Protects the customer’s investment
- Provides customers with peace of mind (In the event of a total loss, they won’t have to worry about taking money from savings to pay balance–or if no savings, paying the payment on a car they can no longer drive)
- Enables the customer to afford a replacement vehicle in the event the vehicle is totaled
- Helps avoid potential credit problems if customer is unable to pay negative equity
Who Needs GAP Coverage?
- Make a down payment of less than 20 percent
- Roll negative equity from a previous car loan into a new car loan
- Finance for 72 months or more
- Finance a vehicle that depreciates very quickly (luxury, highly optioned, many domestic vehicles)
- Lease a vehicle