GAP Protection

Protect Yourself From Owing Money on a Vehicle You Can No Longer Drive

Your auto insurance protects your vehicle’s value. But it may not protect your loan balance.

If your vehicle is stolen or declared a total loss after an accident, your insurance company usually pays the vehicle’s actual cash value at that time — not necessarily what you still owe. If your loan payoff is higher than the insurance settlement, you could be left paying the difference out of pocket.

That difference is called the gap.

GAP protection is designed to help cover that difference, so you are not stuck making payments on a vehicle you no longer own, no longer drive, and still need to replace.

Why GAP Matters

A vehicle can lose value faster than the loan balance goes down, especially during the first few years of ownership. This can create a financial risk if the vehicle is totaled or stolen.

For example:

You owe: $34,000

Insurance payout: $28,000

Remaining balance: $6,000

Without GAP, that remaining balance may be your responsibility.

With GAP, that difference may be covered, depending on the terms of your agreement.

Full Coverage Is Not the Same as GAP

Many customers believe full coverage protects everything. It does not.

Full coverage protects the vehicle’s value. GAP helps protect your loan balance.

That means even with full coverage insurance, you could still owe money after a total loss if your payoff is higher than the insurance settlement.

GAP helps protect you from carrying debt on a vehicle you can no longer use.

Who Should Consider GAP?

GAP protection may be especially helpful if you:

• Made a low down payment
• Chose a longer loan term
• Rolled over negative equity from a previous vehicle
• Financed taxes, fees, or additional products
• Drive a newer vehicle that may depreciate faster
• Want added financial protection during your loan

If any of these apply to you, GAP can be one of the most important protections you add to your vehicle purchase.

A Total Loss Is Stressful Enough

If your vehicle is totaled, you already have enough to deal with — insurance, transportation, replacing the vehicle, and getting back on the road.

The last thing you want is to find out you still owe thousands of dollars on a vehicle you cannot drive anymore.

GAP protection helps give you peace of mind by reducing the risk of being left with a loan balance after a covered total loss.

Protect the Vehicle. Protect the Loan. Protect Yourself.

Your vehicle is one of your biggest purchases. GAP protection helps make sure one unexpected accident does not turn into a financial setback.

Ask us about adding GAP protection to your vehicle purchase today.

Contact us today to learn more about GAP protection.

Disclaimer:

GAP protection is optional and is not required to obtain financing. Coverage, limitations, exclusions, and cancellation terms may vary by provider, lender, and state. Please review the GAP agreement for complete details. GAP may not cover certain amounts such as missed payments, late fees, prior damage, or other exclusions depending on the contract.