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Guaranteed Auto Protection (GAP)GAP covers you in the event of total vehicle loss. The coverage pays your out-of-pocket difference between the actual cash value of the vehicle and the outstanding balance of the loan. GAP coverage is very reasonably priced and provides financial protection to you with minimal impact to the monthly payment.
If your vehicle is totaled or stolen, your primary insurance carrier will usually pay only the actual cash value of your vehicle less the deductible. This amount could be lower than your loan/lease balance.
The final amount is a financial GAP where you must pay the difference between your loan/lease balance and your insurance settlement, which could mean thousands of dollars out of your pocket.
GAP coverage eliminates the out-of-pocket expense you would incur to pay off your loan/lease should your vehicle be stolen or totaled.
For example...
Based on amount borrowed
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$18,000
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Amount owed at time of loss
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$15,000
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Value of vehicle determined by insurance company
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-$10,000
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Deductible of primary insurance
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$500
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Out-of-pocket expense
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$5,500
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GAP will pay
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-$5,500
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Amount you owe after GAP payoff
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$0
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*Deductible coverage is not available in all areas. Call for additional details.
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