Vehicles depreciate the second they leave the lot. Is your vehicle protected in case you owe more than your vehicle is worth? That’s why GAP insurance coverage can be so important.
CARS offers guaranteed asset protection (GAP Protection, for short). GAP insurance coverage is designed to help bridge the gap between what you owe on a vehicle and what your vehicle is actually worth if an unfortunate accident or theft occurs.
If your vehicle is declared a total loss, are you covered?
GAP insurance provides piece of mind, because most insurance policies will only cover a vehicle up to a fair market value, and will not payout a value that exceeds that.
In some cases, a borrower’s loan balance will exceed fair market value. That’s where GAP protection comes into play.
A GAP Insurance Scenario
Assume you purchased your vehicle for $30,000. You made a $1,000 down payment and obtained a loan for $29,000.
A couple of months later, you are involved in an accident and your vehicle is totaled. The insurance company values your car at the time of the accident at $26,000. However, your loan balance is $28,000. The $2,000 difference, plus any deductible, is your responsibility.
GAP protection will cover the $2,000 difference under this scenario, and cover some, or all of the associated deductible (up to $1,000 in most states). This is what makes GAP protection extremely valuable to owners of both new and used vehicles.
Reasons To Invest in GAP Protection
When refinancing, it’s important to look at the big picture because so many vehicle owners owe more than their vehicle is worth. GAP protection through CARS means you are covered no matter what the future brings.
You may want to consider adding GAP Protection to your purchase if:
- You finance your vehicle for 60 months or more
- You put less than 20% down
- You roll negative equity from a previous vehicle loan into a new vehicle loan
- You drive more than the average 15,000 miles annually
- You purchase a vehicle with a history of high depreciation rates
CARS offers GAP Protection featuring benefits up to $50,000 and deductible coverage up to $1,000.
Why CARS, Inc. for GAP Insurance
Unlike some other GAP Insurance products, a GAP Insurance policy through CARS is fully refundable.
CARS is different than other GAP Insurance providers, in that we charge a one-time, low fee for GAP protection. This fee is executed at the time your new or refinanced loan is originated, and can be rolled into the balance of your refinanced loan. It is important to note, however, that purchasing GAP coverage is not required to obtain credit.
Don’t Stress with GAP Protection from CARS
Thinking about refinancing an existing vehicle loan? Do you owe more than the car’s “fair market value”? If you answered yes, contact CARS today – at 1-800-779-2111 or fill out our refinancing application and indicate your interest in adding GAP coverage to your refinancing loan.
Our loan officers will help you with all the information you need to know about our GAP protection products.
Learn more about GAP insurance in our GAP FAQ’s section.
*Please Note: GAP protection is optional and not a requirement to obtain credit.