Gap Auto Insurance Coverage | What Does Gap Insurance Cover?

The amount the insurance company pays to settle your claim is often considerably less than the actual amount
you still owe on your loan, or the amount due for a lease payoff.

If a loss occurs, Gap auto insurance will pay the difference between the actual cash value of the vehicle and the
current outstanding balance on your loan or lease.

The loss from this financial shortfall, plus the amount of your insurance deductible is the “Gap” you could be left
owing. This amount could easily run as much as four or five thousand dollars. And the last thing any consumer
wants to face is the prospect of having to buy a new vehicle while continuing to make payments on a "phantom"
vehicle they no longer own.

Failure to make payments on a phantom vehicle, for whatever reason, will seriously damage your credit
standing for years to come and prevent you from making other much needed purchases.

Gap Insurance protects your vehicle lease or loan. A small investment in Gap auto insurance coverage will
protect your hard earned financial status, prevent unnecessary financial hardship and most importantly, give you
peace of mind.

What Gap Insurance Does NOT Cover
The following Gap insurance exclusions are fairly standard from policy to policy. Please check with your insurer
to for exact coverage and exclusions.

Cars that are not covered by both comprehensive and collision insurance.

The outstanding balance from a previous car loan or lease rolled over into the new car loan.

After market equipment that was not factory installed such as GPS or sound systems.

Financial penalties and/or security deposits on leased vehicles.

Unpaid or overdue lease or loan payments.

The cost for dealer add on products such as extended warranties.

GAP insurance is a powerful and inexpensive tool for leveling the financial playing field between consumers and financial institutions.