If your car becomes a total loss due to theft, fire or accident, you are still responsible for paying the balance on your auto loan. Subject to the terms of your GAP Agreement, GAP pays off the balance that is owed to CarFinance.
Even if you have comprehensive and collision coverage on your vehicle, your primary insurance typically only covers the actual value of your vehicle. This will often be less than the balance owed on your loan. GAP Protection will cover the difference between what your vehicle is worth & the amount you owe on
your loan, subject to the terms and conditions in your GAP Agreement.
You do not need to be out of pocket for the cost of GAP Protection at the beginning of your loan. You can add the cost to your loan amount and pay for this benefit during the term of your loan.
Wouldn’t it be comforting to know your loan obligation can be covered if your vehicle is a total loss? At a time when you need to replace your vehicle, don’t you have better uses for your cash than to pay off your vehicle loan?