Guaranteed Asset Protection (GAP) Insurance
In today's automobile market, during the first few years that you own your vehicle, your loan balance can be higher than the actual value of your car, as a result of depreciation. As your car's value declines, your loan balance can be significantly higher. If your car were stolen, or totaled in an accident, you would be liable to pay the difference between your insurance settlement and your outstanding loan balance. With GAP, the deficiency balance is covered.