Gap Insurance Service

Not to be a downer, but the minute a new car is driven off the lot the financial obligation for your new vehicle passes on to you. If it is declared a total loss after an accident, your insurance company will pay out an amount based on the actual cash value (ACV) of the vehicle. Since cars depreciate quickly, that amount may be far less than what you paid and well below what is owed on the loan or lease. This ‘gap’ between what insurance will pay and the loan balance is your responsibility and that can leave you on the hook for thousands of dollars!
Not so if you purchase GAP coverage, an optional policy that covers the difference between what you owe and what the vehicle is worth if it is stolen or totaled. With GAP you don’t have to worry about getting stuck with car payments and no car

Say after only a couple of payments, your car is totaled. You currently owe $25,000 on your loan or lease at the time of the accident and the insurance company determines that the actual cash value is $20,000. You have a $500 deductible, so the insurance settlement is $19,500, which leaves you responsible for the remaining $5,500 unless you have GAP.

Actual Cash Value = $20,000
Less deductible -$500
Insurance Settlement = $19,500
Loan/Lease Balance = $25,000
Your responsibility without GAP: $5,500
Your responsibility with GAP: $0

GAP is designed for all vehicles, Whether new or used, and the cost can be financed with your loan. It may even cover your insurance deductible up to $1000 (depending on your state) as part of your settlement.​

GAP is designed to cover you in situations where you owe more than the car is worth.
If you finance the vehicle over a longer term (more than 48 months) or put only a small amount down, you should seriously consider GAP.

A GAP policy costs far less than the out-of-pocket costs (rental car fees, deductible and the cost of a replacement auto) you’ll incur if your car is damaged beyond repair. The cost for coverage is very low and you generally need it for just for a few years, until the gap between what you owe and what the car is worth closes.

Yes! With a GAP policy you are protected from day one/mile one, without any hidden catches or waiting periods. It also offers you credit rating protection because falling behind on your loan can harm your rating and make it extremely difficult to get another car loan in the future.

It is fully insured by A-rated insurance companies who A.M. Best considers excellent in financial strength and their ability to pay claims. We hope that you never have a claim on your policy, but it’s great to have the peace of mind that we’re there if you do need us.

You must buy GAP at the time of purchase or lease and it goes into effect as soon as you drive off the lot, so it is highly recommended you purchase it from your dealer. They can roll it right into the loan or lease amount for built-in financing.