GAP Waiver Protection

GAP, Guaranteed Asset Protection

GAP Waiver provides supplemental protection to a borrower’s primary insurance and is designed to help borrowers avoid financial loss in the event of total loss or unrecovered theft. The difference between the loan/lease net payoff amount and the actual cash value (ACV) paid by the primary insurance settlement produces a deficiency balance or “gap.” This remaining loan/lease balance is covered (or waived) with GAP protection.

ADDITIONAL BENEFITS

Borrower Benefits

  • Saves money by reimbursing the insurance deductible (up to $1000) when a deficiency balance remains after a total loss
  • Eliminates risk of negative equity
  • Gives instant equity with $1000 for a replacement vehicle when financed by same lender
  • Provides a positive, quick and fair claims experience

Lender Benefits

  • Reduces charge-offs and GAP exposure allowing more loans to be made
  • Ensures quick payment for GAP claims within 7 days
  • Prevents negative interaction with borrowers due to deficiency loan balances
  • Promotes customer retention by providing $1,000 toward a replacement vehicle

Dealer Benefits

  • Generates fee revenue by allowing markup from the lender
  • Promotes customer retention by providing $1000 toward a replacement vehicle
  • Prevents unfavorable interaction with customers due to negative equity situations
  • Avoids complaints from dissatisfied customers after poor claims experience

  Overview

 

 Application