Adding GAP insurance when you originate a new refinanced auto loan with CARS is a great way to gain peace of mind, while knowing your vehicle is protected, no matter what you still owe on it.
Guaranteed Asset Protection (or GAP, for short) is a type of insurance that comes into effect if your vehicle is declared a total loss, by either an accident, theft or other act of nature and you owe more than the vehicle is worth at the time it is declared a total loss.
What Does GAP Insurance Cover?
Most insurance companies don’t offer GAP insurance, and in the event your vehicle is declared a total loss, the difference between the depreciated “fair market value” of your vehicle and the amount you still owe on your vehicle is your responsibility.
In the event your vehicle is damaged beyond repair, GAP insurance will pay for the difference between market value and what you still owe on the vehicle, and in most cases, the entire associated deductible required to file a claim for the loss of your vehicle.
GAP insurance through CARS comes with the following benefits:
- Pays your remaining loan balance after insurance proceeds are applied to your loan.
- Benefits are paid up to $50,000.
- Protection is provided for the term of your loan (up to 84 months).
- Covers primary insurance deductible up to $1,000.
- Ability to cancel with 100% refund within 30 days of the loan date, and a prorated refund thereafter.
- Prevents deficiency balance from being added to a new loan.
- Helps protect your credit rating.
How Does GAP Insurance Work?
GAP coverage must be purchased at time of loan origination, and must be added when your refinance agreement is executed. There is no adding GAP coverage after-the-fact, and coverage must begin alongside your loan.
GAP is not a substitute for collision or property damage insurance, and you must maintain separate comprehensive and collision insurance coverage in order for GAP insurance to work for you. If you do not carry adequate insurance, your GAP coverage will be void.
In the event that you need to file a claim, CARS will be happy to help file your claim quickly, up to $50,000.
Add GAP Coverage to your Refinance Loan Through CARS
Cars begin to depreciate the moment you drive off the lot. What happens if you’re involved in an accident early on in your vehicle’s life? Will you remain above water? GAP insurance can ease any fears you may have, and can easily be added to any new auto refinance loan serviced through CARS. Contact us today to learn more!