GAP insurance is an optional coverage that you can add to your vehicle loan. If your vehicle is declared a total loss by an insurance company, the insurance company will pay what they deem a fair value for your car. This settlement would be less than your loan balance if you financed the vehicle. You must pay any difference between what the insurance company pays you and your loan balance as part of your total loss settlement. If you purchased GAP Insurance, the policy will pay this amount and save you thousands of dollars.
When should you purchase GAP Insurance?
- Your downpayment was less than 20% of the purchase price
- Your loan term is longer than 48 months
- The interest rate on your loan is high
- You drive a lot of mileage-depreciating your vehicle fast
- You had a previous loan balance you rolled into your new loanÂ
Our experienced sales staff will answer any questions regarding GAP and your new loan.
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