What is GAP Insurance?

It is Guaranteed Auto Protection.

In today's automobile market, a vehicle begins to depreciate the minute it is purchased. Because of this a vehicle's outstanding loan balance is typically higher than its actual cash value, especially during the first few years of the loan.

When a vehicle is totaled or stolen, the borrower's insurance settlement is based on the actual cash value of the vehicle. Because of the way the claim is paid, the settlement can be significantly less than the remaining loan balance. This may create a deficiency balance or a "gap" resulting in a serious financial hardship for the borrower.

Guaranteed Auto Protection (GAP) will help you protect your new or used vehicle investment. If your covered vehicle is totaled or stolen, GAP pays the difference between the actual cash value of the vehicle, (the settlement from your primary insurance company) and the outstanding loan or lease balance at the time of loss, less certian deductions.

Plus, you may be eligible for reimbursement of up to $1000 of your insurance deductible.

GAP Insurance is your "Peace of Mind" policy.
Knowing that you will not be responsible for any deficiency balance or deductible while having to replace your lost vehicle should be your number one reason for wanting GAP Insurance.

For more information, or to purchase GAP protection, click on the "Contact Us" link to contact a loan officer today or call 218-385-2070.