Guaranteed Auto Protection (GAP) Coverage

Guaranteed Auto Protection or GAP, offers protection to financial institutions for the liability they assume from their borrowers who finance a new or used vehicle.

What is Guaranteed Auto Protection?

GAP protects against financial loss in the event that your vehicle is damaged beyond repair (totaled) or stolen and never recovered. With GAP, the covered deficiency balance is then waived.

What does GAP cover?

In today's automobile market, during the first few years of vehicle ownership, the loan/lease balance can be higher than the actual value of the car, as a result of depreciation. As the car's value declines, the loan/lease balance can be significantly higher. If the car were stolen, or totaled in an accident, the borrower would be liable to pay the difference between the insurance settlement and the outstanding loan/lease balance.

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