The minute you drive away in your new vehicle, it depreciates and is worth less than the amount you owe on it. This is especially true for new cars. If your vehicle is stolen or totaled, its cash value can be thousands less than the amount you owe on the loan. You’ll pay out of pocket for the difference. For only a few dollars a month, GAP can save you from this unexpected expense.
GAP is a non-insurance waiver that covers that covers the “gap” between the vehicle’s value and the amount owed on the loan, not including delinquent payments, late charges and other insurance-related charges. It even covers up to $1,000 of your deductible.
GAP Coverage Example
