What is Guaranteed Auto Protection

Guaranteed Auto Protection or GAP provides protection against the unforeseen financial liability. It protects against the financial loss caused by the damage of a vehicle or theft of it. This insurance covers the difference between the net auto insurance payout and the outstanding balance in the retail loan of the vehicle or lease contract.

In simple words, it covers the difference between the actual cash value of the car and the outstanding loan balance at the time of loss. It covers the market value of the vehicle and the amount due or owed. It is meant for all drivers, whether they finance or lease a new or used vehicle.

Private passenger auto, light truck, new and used vehicles and refinanced loans are all qualified for GAP protection. It offers benefits to both borrowers and lenders. Lenders are protected from loss of their credits and borrowers are protected from financial hardships and can save their out- of -pocket expenses.

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