GAP (GUARANTED ASSET PROTECTION)
- GUARANTEES your PEACE insurance OF MIND- Pays the difference between what you owe and what your insurance company feels it is worth in the event of a total loss.
- A-SSET PROTECTION - Enhances your current NO-FAULT Insurance.
- P-AYS up to $1,000* of your deductible.
Reasons Why You Should Only Buy GAP from A Dealership:
- No deductible Coverage. Under an auto insurer's GAP policy, consumers still pay their auto insurance deductible.
- No impact on insurance rates. The more claims consumers have against their auto insurance policies, the more the insurer raises their rates. Claims against dealership GAP policies do not affect auto insurance premiums.
- No risk of cancellation. Auto insurers can cancel policies if consumers file one too many claims. Not true with claims against dealership GAP policies.
- Freedom to switch insurers. If consumers buy from your dealership, they can switch auto insurers without losing GAP coverage. But if consumers want to maintain their insurer's GAP coverage, they must stick with that insurer over the term of the vehicle loan or the term of the GAP policy.
- Negative Equity NOT covered. If the new vehicle is totaled or stolen, your dealership's GAP policy pays the difference between cash value of the vehicle and the balance of the loan — including the negative equity on the trade-in. Insurance companies don't cover the negative equity on the trade-in in their GAP Policies. (Negative equity is broken out on most finance contracts).
- Higher coverage limits. Check the insurer's coverage against your dealership's coverage. Often, the insurer caps coverage at a lower amount. (Usually 100% of MSRP for new & 100% of ACV for used and the unpaid loan balance cannot be rolled into the next vehicle – no trade the vehicle is a total loss; the insurance company owns the title & the vehicle)
- Replacement vehicle – Doesn't mean Brand New.
Replacement vehicle is an optional endorsement with exclusive limitations for example:
- One year or less in age
- Not previously title, and with less than 15,000 miles
- Lender must agree to substitute the collateral
- No guarantees are warranted that the insurance company can find and must replace the vehicle.