What is GAP?
Guaranteed Asset Protection, or GAP, is an optional coverage that can be added to your Auto, Truck, Sportscraft, Boat or Recreational Vehicle loan to complement the physical damage coverage in your primary insurance policy.
In the event of a total loss or the irretrievable theft of your vehicle, GAP can waive the difference between your primary insurance carrier's settlement and your remaining loan balance.
To learn more about GAP, call us at 800-727-3328.
How Does GAP Work?
When your primary auto policy settles a total loss claim based on your vehicle's current value, it is not uncommon for the current value of a vehicle to fall short of the remaining loan balance.
This is where GAP steps in, waiving the difference between your primary insurance settlement and your outstanding loan balance, though some limitations and exclusions apply. Below is an illustration of how GAP Waiver claims settlements are calculated:
With GAP
| Loan balance at the time of loss | $15,000 |
|---|---|
| Primary insurance vehicle valuation | $11,000 |
| Primary insurance settlement payment | $10,000 |
| Deductible paid by insurance policy holder | $1,000 |
| Remaining balance of loan | $4,000 |
| GAP settlement payment to loan balance | $4,000 |
Without GAP
| Loan balance at the time of loss | $15,000 |
|---|---|
| Primary insurance vehicle valuation | $11,000 |
| Primary insurance settlement payment | $10,000 |
| Deductible paid by insurance policy holder | $1,000 |
| Remaining balance of loan | $4,000 |
To learn more about GAP, call us at 800-727-3328.
FAQ
Guaranteed Asset Protection (GAP) is a valuable safeguard for your vehicle. If your car is totaled or stolen and not recovered, your insurance might not cover the entire loan or lease balance, creating a financial gap. GAP steps in to waive some or all of the remaining balance, easing your burden.
You can finance GAP with your loan or make a one-time upfront payment, depending on your preference.
Yes! If you would like to add Broadview's GAP after the loan event, you can contact us at 800-727-3328 to complete the purchase.
When refinancing, it's wise to consider a new GAP Waiver to ensure your new loan is adequately protected.
If you already have GAP coverage and you make changes to your loan that increase the balance, slow down the rate at which the loan is paid off, or extend the loan term, it's a good idea to purchase a new GAP Waiver to ensure you have the most comprehensive protection in place. Your financial security is our priority.
Broadview's GAP program does not have any Loan-to-Value limitations.
