GAP Protection Plan
Policies underwritten to loan amount of $100,000.
Covers the "gap" in your insurance settlement up to $40,000.
Coverage from 24 to 96 months on loan term
Negative Equity, Fees, and Taxes are all included in Loan Amount.
Pay a $500 loyalty credit on your next vehicle purchase.*
Protect your credit rating.
*Loyalty credit is paid directly to the originating dealership to reduce the sale price when the customer purchases a replacement vehicle after an approved claim.
GAP Insurance is one of those expenses that seem like a waste of money until you need it.
In fact, unless you have suffered the total loss of a vehicle through either collision or theft, you may be unfamiliar with GAP insurance and how much it could ultimately save you.
The moment you drive a new vehicle off the dealer lot, your auto insurance is probably inadequate to protect you financially in the case of a total loss. That's because your regular auto insurance is designed to pay the lender the vehicle's current cash value - not the current loan balance. The difference can be thousands of dollars.
And we all know once your new car - owned or leased - leaves the lot, it is considered a used car and the value of it drops significantly.
In fact, the average new vehicle loses 30 percent of its value the first year. By year three, that loss in value will be close to 50 percent, says Philip Reed, Senior Consumer Advice Editor at Edmunds.com, an auto data provider.
If you have GAP insurance, your insurer pays the difference, not you.
Who should buy it?
If you own your car outright or have a lot of equity in it, you don't need GAP insurance, Bill Pearse, Vice President of Auto Produt Strategy and Design for Travelers Insurance, says "Anybody who has an
auto loan or lease and hasn't put a significant amount down should buy GAP insurance"
You're a likely candidate for GAP insurance if you:
- Lease a vehicle.
- Finance a vehicle.
- Put less than 20 percent down.
- Roll negative equity from a previous vehicle loan into a new vehicle loan.
- Drive more than the average 24,000 kilometers annually.
- Purchase a vehicle with a history of high depreciation rates.
*Subject to limitations. All rights with respect to the benefits of the covered borrower will be governed solely by the contractual policy.
- covers the shortfall between the covered amount and the loan balance*
- $500 bonus towards the purchase of your new vehicle
- up to $500 in rental car coverage
- terms from 24 to 96 months.
- protect your credit rating