What Does Guaranteed
Asset Protection (GAP) Cover?
It’s not uncommon for situations like this to occur, where you end up losing your vehicle for some reason and still owe more than your insurer is able to provide to you. With GAP in place on your auto loan, though, you don’t have to worry about being stuck paying a lot to pay off your auto loan. It helps to protect you against out of pocket costs when your vehicle is a total loss.
Here’s an example of what may happen:
You refinance your auto loan with the help of the RefiJet team. You choose to include GAP protection with your new loan. A few months in, the vehicle is stolen from your driveway. The police are looking for it, but aren’t hopeful. You file a claim with your insurance company for the theft. They agree to file the claim, but they say the value of the car right now is just $15,000. You owe $17,000 on your loan, though.
In this case, your GAP coverage steps in to provide financial help. It helps cover that $2,000 difference for you. It even contributes up to $1,000 towards your insurance deductible. That way, you can pay off the loan and go on to purchase a new car.
If you did not have this coverage, you would still be without a car, but you also would still owe your lender that $2,000. That’s money you could be putting towards the down payment on a new car. If your loan to value ratio is more than 70%, GAP can be a very helpful product.
You might be a great driver, but accidents and theft still happen through no fault of your own. GAP can minimize your risks and make a bad situation a bit easier on both your mind and your budget.
What You Can Expect from GAP Coverage
At RefiJet, we offer GAP insurance from industry-leading providers. You may be eligible for several plans. Each one has slightly different features. One of our Financial Services Representatives can help you to determine if GAP is right for you and what type of features are best to seek out. Some offer features such as contributing towards your insurance deductible. For example, in the above examples, you may have an insurance deductible of $1,000 to pay first, before the insurer covers the rest. GAP may help you to cover some of that costs, further reducing your out of pocket expenses.
Do your homework right now to determine just how much protection you have. You may even wish to read through your auto insurance policy to see how they would pay out in such an instance. Then, turn to RefiJet for help with GAP.
Should You Include It on Your Auto Refinance with Us?
Speak to our agents about the benefits it offers. RefiJet makes the entire process very easy for you.
- You can finance the purchase of GAP through your refinance loan.
- If you already had GAP in place, it will not transfer to the new loan. You can cancel it and you may be due a pro-rated refund.
- The investment in GAP may be very affordable, especially if it has to pay out at some time during your vehicle ownership. It could save you thousands of dollars in such events.
Do not hit the road without understanding your refinance options and if adding GAP to your loan makes sense for you to protect your vehicle. That includes GAP. It could help to minimize financial risk to you.
.svg)
