GAP Protection

Self Study

  • 5

    Sections

  • 4

    Videos

  • 31

    Minutes

Overview

GUARANTEED ASSET PROTECTION OFFERS PEACE OF MIND
A GAP waiver can help reduce out-of-pocket expenses in cases of vehicle theft or total loss.

Help close the “gap” on your vehicle loan:
While you can’t predict a theft or accident, a Guaranteed Asset Protection (GAP) waiver can help protect you from the resulting costs.
When a vehicle is declared a total loss, due to theft or accident, the primary automobile insurance will typically cover the actual cash value of the vehicle at the time of loss. This amount can be less than the outstanding balance on the loan. The difference between the amount covered by the insurer and the remaining balance on the loan is often referred to as the “gap.” You would be responsible for paying this amount to the lender.
A GAP waiver can help limit this financial obligation by waiving some or all of what is owed, excluding certain items such as unpaid past-due payments and late fees.
It can even waive your insurance deductible up to $1,000.