What is Guaranteed Asset Protection?
GAP is a voluntary, non-insurance product designed to waive the remaining loan balance not covered by the borrower’s primary insurance carrier settlement in the event of a total loss or unrecovered theft, subject to limitations and exclusions, including, but not limited to, loan-to-value (LTV) maximum, delinquent payments, late charges, refundable service warranty contracts and other insurance-related charges.
How does GAP work?
The actual cash value of your vehicle as determined by your primary insurance carrier could be less than the actual balance you owe on your loan. In the event of a total loss or theft, GAP waives the difference between your outstanding loan balance and the actual cash value (ACV) of the vehicle up to the maximum LTV %. GAP may also cover up to $1,000 of your deductible if there is a “gap” after the primary insurance settlement is paid. The deductible is covered as part of the deficiency balance settlement. Not available in NY or AK.
Your one-year-old financed vehicle is totaled beyond repair.
|Your loan balance is||$15,000|
|Your insurance company settlement is||$10,000|
|Based on your vehicle’s market value||$11,000|
|Less your insurance deductible||$1,000|
|Total amount you owe without GAP Advantage||$5,000|
|Total amount you owe with GAP Advantage||$0|
PLUS $1,000 credit towards the financing of your replacement vehicle when you finance with Service First!
GAP is subject to limitations and exclusions, including but not limited to a loan-to-value (LTV) maximum.