GAP or Guaranteed Auto Protection
The Guaranteed Auto Protection (GAP) Program provides retail or lease customers with one very significant benefit - peace of mind. This peace of mind comes from knowing that you and your family are protected from the burden of an unexpected financial obligation if your vehicle is declared a total loss due to theft or collision.
Filling the GAP
GAP protection pays the difference between the balance on your retail or lease contract and your vehicle's market value.* Without GAP, you are generally responsible to pay this amount. With GAP, the deficiency balance is paid, including your auto insurance deductible** in most states.
How GAP Works (example)
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Retail or Lease Contract Payoff
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$23,000
|
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Auto Insurance Settlement
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- -
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$20,000
$3,000
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| |
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Auto Insurance Deductible**
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++
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$1,000
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| |
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Total Out-of Pocket Expense
|
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$4,000
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| |
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GAP Payment*
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- -
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$4,000
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| |
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Total Owned to Finance Company
to Pay Off Retail or Lease Contract
|
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$0
|
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* Less any delinquent payments, taxes and past due charges. See agreement certificate or waiver for complete details. Some restrictions apply. This is established by your auto insurance carrier or the industry guide.
** The auto insurance deductible benefit may not be available in all states.
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