GAP Insurance
Guaranteed Asset Protection
A vehicle purchase is a big decision. One way to set your mind at ease is to consider our guaranteed asset protection, or GAP insurance. Accidents happen every day. Imagine your new vehicle being totaled or stolen and not recovered, or even destroyed in a weather related incident like a tornado or a flash flood.
If your loan balance is more than what the insurance company says your vehicle is worth at the time of loss, GAP becomes your knight in shining armor as it can waive or cancel this difference (negative equity). And your insurance deductible might also be covered (up to one thousand dollars in some cases). Basically, the main reason people purchase this type of insurance is to protect their best interest in the event of a worst-case scenario.
Let’s face it, today’s cars and trucks have lots of in-vehicle technology to help you avoid or survive an accident like autonomous braking, air bags, and crumple zones. These safety systems are also extremely expensive to repair making it much more likely that if your vehicle is stolen or in an accident, it’ll be totaled out by the insurance adjuster. In fact, your new vehicle is designed to sacrifice its life to save yours. With today’s longer term loans, a larger percentage of people are saddled with a significant amount of negative equity. And they’re never happy when they find out they have to pay off that amount because they’re still responsible for any negative equity. If there is a difference between what your insurance company pays and what you still owe the lender, Guaranteed Asset Protection or GAP pays that deficit and in most states, it also pays your deductible.
Do you need GAP insurance?
Let’s examine this hypothetical scenario:
Joe purchased a one-year-old Chevy Traverse a year ago. He was recently involved in a traffic accident where he was hit from behind while waiting for the light in the westbound lane on Highway 20 in front of Los Aztecas. The force of the collision slammed Joe’s SUV into the back of the semi that had stopped in front of him. Both the front and back ends of Joe’s Traverse were smashed in. There was structural damage to the rear of his SUV and the frontal impact took out his radiator and both headlights. Chances are good that Joe’s vehicle will be declared a total loss. In a situation like this, Joe would likely benefit from having GAP coverage on this vehicle.
Do you need GAP? It all depends on your situation.
However, it could protect you against thousands of dollars in potential liability in the event your vehicle is ever stolen or declared a total loss. GAP can also ensure you won’t be paying for a vehicle you no longer own. It’s crazy to think that all it takes is one distracted driver talking on their cell phone or texting to total your new vehicle. And seriously, who wants to keep making payments on a vehicle that is no longer drivable? No one ever wants to get a call from their personal banker saying, “After we apply the check from the insurance company, you’re still going to owe $6318.24. How did you want to pay that?” With GAP insurance, you’ll never have to hear anything like that. GAP insurance is peace of mind for the road ahead.
Cost ranges from $499 to $999.
Contact
- Phone: 866-735-5200
- Email: Chevyfi@RundeAutoGroup.com
- Web: www.RundeAutoGroup.com
Finance Department Hours
Mon: 8:00am – 7:00pm
Tue: 8:00am – 7:00pm
Wed: 8:00am – 7:00pm
Thu: 8:00am – 7:00pm
Fri: 8:00am – 7:00pm
Sat: 9:00am – 3:00pm
Sun: Closed
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