Most cars depreciate by thousands of dollars as soon as they are purchased. Unfortunately, if your vehicle is stolen, accidentally damaged beyond repair, or otherwise declared as a total loss, you are still liable to pay the difference, or the “gap” between your insurer’s settlement and your loan balance. That gap will come out of your pocket for a vehicle that, for all practical purposes, no longer exists.
Guaranteed Asset Protection (GAP) could save you thousands of dollars. GAP is low-cost coverage that pays the potentially high-cost difference between your insurance settlement and your loan balance on items directly related to the purchase of your vehicle.
For just a few dollars a month, GAP can save you from making loan payment on a car, truck or other vehicle that’s beyond repair, or stolen and not recovered. It’s easy to be covered. You can sign up for GAP when you apply for your vehicle loan. There’s no underwriting, no red tape, no hassle. And for your convenience can be rolled into your monthly loan payment.