Guaranteed asset protection (GAP)

When you purchase a new vehicle, it starts to depreciate the moment it leaves the lot.  In the event your vehicle is stolen, accidently damaged beyond repair, or declared a total loss by your insurance company, they typically pay the actual cash value of the vehicle at the time of loss – not what you actually still owe on your loan. Frustrating right?

GAP can help cover the difference between what you owe on your loan and what your car is worth.

How GAP Works

Loan Amount = $36,000 

Term = 72 Months
Loss Date = 36 Months 

Loan/Lease Payoff at Time of Loss ....... $18,000 

Insurance Settlement**.......................... $14,000 

Potential Out-of-Pocket Expense ...........($4,000) 

Out-of-Pocket Expense
With GAP Protection ............................$0   

**Actual Cash Value of Vehicle

You should consider GAP coverage if:

·  If you put down a low down payment

·  If you traded in a vehicle and are rolling over negative equity 

·  If you leased your vehicle

·  If your financing your vehicle for longer than 5 years