GAP Insurance
GAP Protection Benefits for Your Car
If your vehicle is stolen, accidentally damaged beyond repair, or otherwise declared an insured total loss, most standard auto policies only cover the actual cash value of the vehicle...minus your deductible. Unfortunately, you remain financially liable for any shortfall between the net insurance settlement and what you owe on your loan. You could owe thousands of dollars on a vehicle that you no longer have. GAP protection covers the financial shortfall between your primary insurance company's total loss settlement and the remaining balance of your loan. Additionally, GAP protection covers your out-of-pocket deductible on your loan policy.*
How GAP Works
| Item | Amount |
|---|---|
| Loan Balance at the time of Loss | $21,000 |
| Value of Vehicle | $17,000 |
| Less Insurance Deductible | -$1,000 |
| Auto Insurance Settlement | $16,000 |
| WITHOUT GAP you could still owe | $5,000 |
| With GAP you owe | $0 |
GAP Protection Benefits*
Covers the financial GAP between the actual cash value of your vehicle and the payoff amount of your loan in the event of a total loss.
Covers your auto insurance deductible up to $1,000**
Releases you from the burden of paying off a loan on a vehicle you no longer have
Protects personal credit rating
Provides so much peace of mind for so little cost
How Much is GAP
| Item | Amount |
|---|---|
| All Automobiles | $450 |
| Motorcycles, ATVs, Jetskis, Snowmobiles: | $450 |
| Travel Trailers & Watercrafts: | $675 |
| Original Loan Balance less than $15,000 | $825 |
| Original Loan Balance between $15,001 to $50,000 | $825 |
| Original Loan Balance between $50,001 to $100,000 | $1,075 |
| Motor Homes: | |
| Original Loan Balance less than $15,000 | $725 |
| Original LoanBalance between $15,001 to $50,000 | $875 |
| Original Loan Balance between $50,001 to $100,000 | $1,125 |
*Subject to terms, conditions, limitations and exclusions set forth in your GAP Waiver Addendum.
**Deductible reimbursement benefits subject to the maximum limit set forth in your GAP Waiver Addendum. Deductible reimbursement benefits are only applicable in the event a GAP Amount is waived under the GAP Waiver Addendum. Such benefit is prohibited on loans originating in Arkansas.