Guaranteed Asset Protection(GAP) is designed to protect you against the financial hardship that often occurs when you experience a vehicle write off.
It is very typical for someone to owe more to the bank than what the insurance company gives for the written off vehicle. Rather than You write a check to the bank for $5000, $15,000 or more, your GAP policy will pay that outstanding debt for you.
$34,000 Vehicle Loan Amount At Start Of Loan
$24,000 Loan Balance At Time Of Write Off
$17,000 Potential Vehicle Value At Time Of Write Off
$7,000 LOAN SHORTFALL
$7,000 Paid By The GAP Policy To Your Lender