A car will depreciate up to 20% in value the minute you drive it off the dealer's lot. If you finance a vehicle, you may owe more on it than it's worth. If you are in an accident that is serious enough to total the car or the car is stolen, your insurance company is not going to write you a check for what the car was worth before you took it off the dealer's lot.
If you find out after an incident
the vehicle's cash value is lower than the amount you owe, you are still
responsible for the difference. This situation is called being upside
down on the loan. You owe more on the asset than it is currently
worth. GAP coverage is designed to bridge the gap between the outstanding loan
balance and the cash value of the vehicle.
Includes all the benefits of GAP AdvantageSM, plus:
Please refer to the actual GAP waiver for current details regarding specific coverage, benefits, exclusions and state restrictions.