GAP – Guaranteed Asset Protection
Unfortunately with most insurance policies a common expression rings true, “You don’t know what you have until you need to use it.” That is where GAP protection kicks in.
GAP covers the difference between the value of your car at the time it was totaled and what you owe to the bank.
Most auto insurance policies regardless of your coverage limits ($500,000+ etc) will only pay back what it is worth at the time of the accident (depending on the mood of your insurance adjuster). But you may owe more to the bank on your car loan or lease than the vehicle’s value.
KC Summers has specifically designed a GAP coverage that is among the best in the auto industry. Not only does it cover all of the remaining balance in most cases, it also covers your insurance deductible.
If you fall into any of these categories, GAP is probably a good idea.
- Inequity, no down payment, or one that is less than 10% of the vehicles value
- A loan over 48 months or most leases
- If you drive over 12,000 miles a year