In 2010, a motor vehicle theft occurred every 42.8 seconds in the United States.1
In the event of total loss, the difference between what you owe on your vehicle
loan and the amount you receive from your primary insurance carrier is greater in
the early years of vehicle ownership.
Cost above are for illustrative purposes only.
Actual costs may vary as to make, model and year.
What Guaranteed Asset Protection (GAP) Pays
In the unfortunate event your vehicle is declared a total loss due to an unrecoverable
theft or accidental damage, your auto insurance company will typically pay the current
market value of your vehicle less your deductible. But what if your loan or lease
balance is higher than the market value of your vehicle? Answer: You would be responsible
for paying off the difference, including your deductible. This can be expensive.
The reason for the potential difference is that normally the loan/lease balance
decreases at a predictable amount as monthly payments are made. However, the market
value of your vehicle is influenced by several variable factors (e.g. supply, demand,
mileage). This means that market value often may be lower than your outstanding
balance – particularly early in your contract when you have the most to lose.
GAP can help waive the difference, including up to
$1,000 of your insurance deductible.2
The Choice is Yours
GAP is an optional form of protection available only at the time you sign your Retail
Finance or Lease Contract with the dealership. If you would like to know more about
GAP, ask to see the GAP contract. Besides the limitations listed at the right,
terms and conditions may vary by state.
Payment of Deductible2
GAP only provides a benefit if there is a balance due on the loan or lease after
the insurance settlement. If there is no balance due, we will not pay your deductible.
GAP coverage is terminated if the Retail Finance or Lease Contract is refinanced.
GAP waiver amount does not include insurance settlement deductions for customer retained
salvage, unrepaired physical damage, towing, rental or storage.
Non-Covered Finance Items
GAP waiver amount does not include late payments, deferred payments, late charges/interest
or interest after the date of loss.
GAP does not refund advance payments or vehicle equity.
GAP waiver amount does not include the refundable portion of any finance additions
such as credit insurance or service contracts.
Customer Secured Financing
GAP does not apply to any loan obtained from any finance source other than the dealer.
GAP does not provide any insurance coverage for you or the vehicle, such as collision,
comprehensive, bodily injury, property damage or liability. You must have or obtain
physical damage insurance on your vehicle at the time of purchase in order for GAP
to be effective. GAP is not a replacement for primary auto insurance.