GAP AUTO INSURANCE
Too often car owners assume that their primary insurance is sufficient to cover any loss related to their vehicle. In reality, the Actual Cash Value an insurance company places on your car may be substantially less than the outstanding financial contract balance. Consequently, if your car is damaged or stolen and a total loss occurs, you may be responsible for the "Gap"! This Gap amount is the difference between the financial contract payoff and the Actual Cash Value determined by your primary insurance company, an amount for which you are responsible.
It pays off your remaining financial contract balance including your deductible.*
The costs for Gap Protection can be included as a small addition to your monthly payment.
It clears your balance sheet allowing you to start fresh with a new car purchase.
Gap Protection is available for all types of financial contracts:Loans, Balloon Loans, and Leases.
How Gap Protection Works
|Financial Contract Payoff||$23,000.00|
|Actual Cash Value||$20,000.00|
|Vehicle Payoff Owed by Customer||$3,000.00|
|Customer's Insurance Deductible||$500.00|
|Out of Pocket Expense||$3,500.00|
|Gap Payment on behalf of Customer||$3,500.00|
|Customer's Total Out of Pocket Expense||$0.00|