GAP insurance is designed to protect you and your family from an unexpected financial obligation if your vehicle is declared a total loss from causes such as theft, accident, fire, or flood.
Why Do I Need Guaranteed Auto Protection (GAP)?
If your vehicle is declared a total loss, your auto insurance company may not cover the amount needed to pay off your finance or lease contract. Auto insurance companies will generally pay the market value of the vehicle minus the auto insurance deductible. So who pays the remainder? You do, unless you have Guaranteed Auto Protection (GAP). The GAP Insurance program will pay the difference between your vehicle's market value and the balance on your finance or lease contract, including up to $500 of your auto insurance deductible.
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When Can I Buy Gap Auto Insurance?
Typically, to be eligible to buy gap insurance, your vehicle must have been purchased, refinanced or leased within the last 12 months. If your vehicle has already been totaled or stolen, it is not eligible for coverage.
How Does GAP Auto Insurance Work?
Example Purposes Only
Finance or lease contract payoff amount $20,000
Minus total auto insurance settlement -$17,000
Sub-Total $3,000
Plus auto insurance deductible +$500
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Without Gap Insurance
Your Total out-of-pocket expense is $3,500*
With Gap Insurance
$0* --- You pay nothing, nada, zilch!
* Total you owe to financial institution to pay off finance or lease contract
What Types of Vehicles Qualify For GAP Insurance?
- All New Vehicles
- Used vehicles that have been purchased or refinanced within the past 12 months.
- Total auto insurance settlement before deductible is applied.
- GAP insurance includes up to $500 of your auto insurance deductible.
- Deficiency balance at time of total loss.
- Less any delinquent payments, taxes, and past-due charges.
- Includes protection from vehicle theft.
- Vehicle eligibility may vary by state.
Gap insurance normally costs between $250-$600
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Disclaimer
This gap insurance page is for information purposes only. It may or may not be accurate so please check with your provider prior to purchasing any insurance product.