If your vehicle is stolen or totaled in an accident, your primary insurance settlement will be based on its actual cash value, not the outstanding loan balance. If you owe more than the insurance company covers, you would have to pay that “gap” out of your own pocket. When you purchase GAP, that deficiency is cancelled.
You can add the cost of GAP to your loan during the loan closing. If you’ve recently closed your loan, you may still have the opportunity to purchase GAP.
In addition to the gap between what you owe and what your insurance compay covers, GAP Advantage also provides an additional $1,000 toward the purchase of a replacement vehicle financed within 90 days from the settlement date.
*available in all states except Alaska
|RVs (motor homes, travel trailers, and pickup/campers)|
|$25,000 or less||$395|
|More than $25,000||$495|