GAP Coverage
You have had an accident that destroyed your car and, now, could be disappointed with your total loss payoff check from your insurance provider. It is not as uncommon as you might think. Lots of people are underwater on their car loans. Being underwater on a loan means you owe more than your car is worth at any time during your loan. This situation can put you at risk of receiving a payoff check that is lower than your auto loan balance.
Guaranteed Auto Protection (GAP) coverage makes up the difference between the settlement amount from your insurance company and the amount still owed to a finance company, in the event of a total loss. Fill the gap in your Auto Insurance with GAP coverage. Whether you are leasing or financing, GAP can help protect you from coming out of pocket to pay expenses you may face with a total vehicle loss.
The following are some circumstances in which to consider purchasing GAP Coverage:
Down Payment - Your vehicle is most likely insured for Actual Cash Value, aka what it is worth at the time of loss. People who purchase vehicles with little or no down payment who have license and tax fees added to the cost of their loans easily could end up owing more on their car than it is worth. If you are not able to pay 20% down on your auto loan, you need GAP coverage to cover the difference.
Finance Term - Anyone purchasing a car loan with a term longer than four years is an ideal candidate for GAP coverage.
Prior Loan Balance - It's common for people to trade in their current car when purchasing a new car, and, if the current car is not yet paid off, many choose to roll the current car loan into the new one. While many people do this, you should carefully consider your options before taking this route. Any time the auto loan amount exceed the value of the vehicle, gap insurance provides value.
Disclaimers:
1. Program coverage will vary depending upon the type of plan purchased and is subject to state regulations. Each product offered comes with specific coverage and exclusions. Not all customers will qualify. The content of this marketing material is limited by its size. The entire terms, conditions and exclusions, including but not limited to, your duties, are included in the written agreement. For complete details and exclusions for each plan, please ask your dealer representative for more information. The purchase of these products is optional and is in no way a condition to either the purchase or financing (obtaining credit) of a vehicle
2. Product offerings are provided by partners of Penske Automotive Group and/or the Manufacturer. Coverage limitations and exclusions will be based on selected provider.