GAP covers the difference between your primary carrier insurance settlement and the payoff of your loan or lease, less the delinquent payments, late charges, refundable service warranty contracts, and other insurance related charges. For example, if your car is stolen or totaled vehicle, we offer this service for a flat rate of $450.00, while dealers charge a percentage of the loan amount. GAP protection will pay the difference between an insurance settlement and the payoff balance of your loan or lease.
Original Purchase: $20,000
Loan amount after one year: $18,000
Insurance Settlement: $15,000
GAP Pays: $3,000