Palmer Dodge Chrysler Jeep Ram

11460 Alpharetta Hwy
Directions Roswell, GA 30076

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  • Service: (888) 289-9558
  • Parts: (888) 310-7058

Gap Protection

  

What is Gap Protection?

What Guaranteed Asset Protection (GAP) Pays

In the unfortunate event your vehicle is declared a total loss due to an unrecoverable theft or accidental damage, your auto insurance company will typically pay the current market value of your vehicle less your deductible. But what if your loan balance is higher than the market value of your vehicle? Answer: You would be responsible for paying off the difference, including your deductible. This can be expensive.


gap-fact-2

*Cost above are for illustrative purposes only. Actual costs may vary as to make, model and year.

The reason for the potential difference is that normally the loan/lease balance decreases at a predictable amount as monthly payments are made. However, the market value of your vehicle is influenced by several variable factors (e.g. supply, demand, mileage). This means that market value often may be lower than your outstanding balance - particularly early in your contract when you have the most to lose.

GAP can help waive the difference, including up to $1,000 of your insurance deductible.2


The Choice is Yours 

GAP is an optional form of protection available only at the time you sign your Retail Finance or Lease Contract with the dealership. If you would like to know more about GAP, ask to see the GAP agreement. Besides the limitations listed at the right, terms and conditions may vary by state.

 

Make an Inquiry

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Is the amount you receive from your insurance company enough to pay off your loan or lease balance if your vehicle is declared a total loss?    

For Example

Insurance Settlement
Market Value of Vehicle$13,000
Less Your Insurance Deductible-$1,000
Proceeds from Insurance Company$12,000
Amount You Owe on Loan or Lease$18,500
Proceeds from Insurance Company-$12,000
The Difference$6,500

In this example, the answer is No! The difference illustrates what you would still owe your lender without GAP.

gap-diagram