Avoid the GAP Trap!
Protect Yourself with GAP Insurance

What is GAP?
GAP is the difference between the actual cash value of your car and what you still owe on your loan. If your car is stolen or declared totaled, your auto insurance company will pay you the actual cash value of the car. Without GAP insurance your lender will hold you responsible for paying the GAP. This will mean you having to come up with hundreds, even thousands of dollars to pay that debt.

What is GAP Insurance?
GAP Insurance covers the difference of what you owe on your auto loan and the actual cash value of your vehicle. GAP insurance is available on new, used and refinanced cars, trucks, SUVs, motorcycles, RVs and boats at the time of purchase or refinancing. However, you may purchase GAP insurance anytime.

Who Needs It?
For buyers, gap insurance only makes sense if you expect to be "upside down" on the car (you owe more than it is worth). If you made a low down payment, if you bought a car that depreciates rapidly, if you have a high interest rate or if you rolled over other costs, such as money owed on a trade-in, into your new-car payments, gap insurance makes sense. As a general rule, if you finance more than 80%, GAP insurance is a good idea. Most buyers, particularly those who made a healthy down payment, will always be “right side up” on the car, and therefore don't need gap insurance.