GAP stands for “Guaranteed Auto Protection”
Ask yourself this question: “Will my insurance company pay off my loan if my vehicle is totaled?”
The answer is that most people believe that if their vehicle is totaled or stolen, their primary insurance will pay off their loan balance. Well, think again!
If your vehicle is totaled or stolen, your primary insurance carrier will usually pay only the actual cash value (current market value) of your vehicle, less your deductible. This amount could be substantially lower than your loan balance.
The final result is a financial GAP where you must pay the difference between your loan balance and your insurance settlement, which could mean thousands of dollars out of your pocket.
That’s why many owners have chosen GAP. GAP coverage eliminates the out-of-pocket expense you would incur to pay off your loan in full should your vehicle be stolen or totaled.