What Does Guaranteed
Asset Protection (GAP) Cover?
Refinancing your car loan with a GAP waiver* protects you from paying out of pocket following a total loss. It’s not uncommon to owe more on an auto loan than your insurer is able to provide for you. With GAP, you don’t have to worry about paying a big difference between your loan amount and your car’s actual cash value.
*please note that GAP does not cover late fees or extensions. Make sure to read the entire contract.
Here’s an example of what may happen:
You refinance your car with GAP coverage. A few months in, the vehicle is stolen from your driveway. The police are looking for it but aren’t hopeful. You file a claim with your insurance company for the theft. They agree to file the claim, but they say the value of the car right now is just $15,000. You owe $17,000 on your loan.
In this case, your GAP coverage pays the $2,000 difference for you. GAP covers you up to 150% of your vehicle's retail value in the event of a total loss and even pays your deductible up to $1,000 (or applicable state limit).
If you did not have GAP on your refinanced car, you would be without a car and owe your lender $2,000. That’s money you could be putting towards the down payment on a new car. If your loan to value ratio is more than 70%, GAP can be a very helpful product.
You might be a great driver, but accidents and theft still happen through no fault of your own. GAP can minimize your risks and make a bad situation a bit easier on both your mind and your budget.
What You
Can Expect
from GAP
Coverage
At RefiJet, we offer auto refinancing with GAP from industry-leading providers. You may be eligible for several plans. Each one has slightly different features, for example, contributing toward your insurance deductible. One of our Financial Services Representatives can help you determine if GAP is right for you and what type of features are best to seek out.
Do your homework right now to determine just how much protection you have. You may even wish to read through your auto insurance policy to see how they would pay out in such an instance. Then, turn to RefiJet for help with GAP during a refinance.
Should You Refinance a Car with GAP?
Speak to our agents about the benefits GAP offers. RefiJet makes the entire process very easy for you.
- You can bundle the purchase of GAP into your refinance loan.
- Existing GAP protection doesn’t transfer when you refinance. You can cancel it, and you may be due a pro-rated refund.
- GAP coverage can be very affordable and could save you thousands of dollars in unexpected situations.
Don't hit the road without considering a GAP waiver with your auto refinance.
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