In the event of a total loss due to unrecovered theft, collision, fire or any insured peril, your vehicle asset may be worth less than the amount you owe on your loan at the time of total loss. In many cases this will leave you responsible for paying the difference.
If a covered loss occurs, GAP coverage will, in most cases, pay the difference between the actual cash value and the scheduled balance owed to the lender, net of refunds.
How Gap Coverage Works
Actual Cash Value - $12,000
Less the Insurance Deductible - -$500
Insurance Check - $11,500
Loan Balance Payoff - $14,600
GAP Benefit - $3,100
GAP COVERAGE HIGHLIGHTS
- Payable in the event of a total loss
- Covers the difference, in most cases, between the scheduled asset pay-off amount net of refunds and the asset's actual cash value
- Covers your primary insurance deductible up to $1,000
- GAP coverage reminds intact if your primary automotive insurance coverage lapses
- Protection for vehicles with a loan amount of up to $100,000 at the time of purchase
- Up to 84 months of protection available
- GAP benefit covers up to $50,000
- Coverage available for most financed new and pre-owned vehicles
- Protects your personal credit rating
All vehicles and certain vehicles and brands of vehicles may not qualify for all or any of these benefits. Please ask your business & finance manager for details.