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Your Auto Insurance Does Not Cover Everything
In the current market, during the first few years that you own your vehicle, your loan/lease balance can be higher than the actual value of your vehicle, as a result of depreciation. As your vehicle's value declines, your loan/lease balance may decline more slowly resulting in a financial gap. If your vehicle were stolen, or totaled in an accident, you would be liable to pay the difference between your insurance settlement and your outstanding loan/lease balance.
Protection Through GAP
What is GAP?
Gap is a voluntary, non-insurance product designed to waive the remaining loan balance not covered by the borrower's primary insurance carrier settlement in the event of a total loss or unrecovered theft, subject to limitations and exclusions, including but not limited to loan to value (LTV) maximum, delinquent payments, late charges, refundable service warranty contracts and other insurance related charges.
What does GAP cover?
GAP covers the difference between the borrower's outstanding loan balance and the actual cash value (ACV) of the vehicle up to the maximum LTV%.
Gap may also cover up to $1,000.00 of the borrower's deductible if there is a "gap" after the primary insurance settlement is paid.*
What Do I need to File a Gap claim?
To file a claim, you will need the following items:
- Police report OR cause of loss letter
- Market valuation
- Settlement breakdown
Still have questions? Read our GAP Frequently Asked Questions.
*The deductible is covered as part of the deficiency balance settlement. It is not paid directly to the borrower. Not available in NY or AK.