What is Guaranteed Asset Protection?
Guaranteed Asset Protection (GAP) helps borrowers and lenders avoid financial loss by waiving all or a portion of the deficiency between a borrower's payoff amount on their auto loan and the determined actual cash value of vehicle in the event that a vehicle is totaled or stolen, up to a certain LTV maximum, less exclusions or limitations that may apply. This is a voluntary, non-insurance product.
How does GAP work?
The actual cash value of your vehicle as determined by your primary insurance carrier could be less than the actual balance ou owe on your loan. In the event of a total loss or theft, GAP waives the difference between your 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 of your deductible if there is a "gap" after the primary insurance settlement is paid. The deductible is covered as part of the deficency balance settlement.