Gap Protection
Gap Protection protects your credit and your investment.
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The book value of a vehicle often decreases more rapidly than the amount owed leaving a gap.
- Did you know that in the event your vehicle is a total loss, your primary automotive insurance may not provide enough money to pay it off or replace it?
- Every year, over 8 million vehicles are totaled in events such as collision, theft, and natural disasters. Very often, your insurance settlement is thousands of dollars less that what you still owe on your auto loan.
- Why? It is due to conservative insurance settlements, longer term loans, higher costs of new and used vehicles, interest fees, and the use of accelerated depreciation schedules.
- If disaster strikes, you are responsible for any difference between the insurance value of your vehicle and your outstanding loan balance.
- YOU could end up paying thousands of dollars out your own pocket for the difference on the vehicle that you no longer own.
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EXAMPLE: If your vehicle is totaled…..
Loan Balance / Year 2 = $15,500.
Insurance Settlement = $13,000.
Loan Deficiency (GAP) = $2,500.
Customer Deductible = $500.
Out of pocket Expense = $3,000.
Gap Insurance Benefit = $3,000.
Out of pocket expense
When protected by Gap Insurance = $ 0
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Now you can obtain Gap Protection for just a few dollars per month
- Protect your investment and your credit rating.
- That’s protection you can use. A totaled vehicle should not create a financial hardship, cost you out of pocket, or reduce your ability to replace your vehicle.
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