What is GAP?
If you have a vehicle or recreational loan, GAP may be right for you. GAP stands for Guaranteed Asset Protection which, in a nutshell, is extra insurance to cover a potential loss on your vehicle. It’s sort of like having an insurance standby or reinforcement on your current insurance policy. The coverage pays the difference – or “gap” – in what you may owe on the loan versus what your insurance company pays if there is a total loss.
GAP insurance pays the difference if…
- Your car is totaled, and insurance doesn’t cover the loan balance
- Someone steals your car, and you still owe on the loan after your insurer pays the claim
Is it too late to purchase GAP?
Many financial institutions will offer GAP coverage only at the time the loan is closed. But at Advia, we can provide coverage to an existing loan we’ve already disbursed. If a member decides to purchase it after their loan has closed, they can do so by paying for the expense out of pocket. (Not all insurers offer this convenience.)
Anyone who hasn’t made a significant down payment on a vehicle and has an auto loan or lease should investigate GAP coverage. Coverage can typically be purchased for most any vehicle you finance and insure – including cars, boats, and RVs, though there may be restrictions on commercial vehicles. It can also cover your insurance deductible or provide a down payment on your next vehicle. At Advia, GAP coverage offers down payment amounts of up to $1,000.
GAP Coverage: Another way to say, “You’re protected.”
While it won’t prevent you from getting into an accident or make your car invisible to would-be thieves, GAP insurance WILL provide added security for your car loan or lease, which, for most of us, is a very large investment. And these days, a little peace of mind goes a long way. See us at Advia if you need help comparing your financing options, and to find out if GAP coverage is right for you. You can also view frequently asked questions and a step-by-step example of how easy it is to file a claim here.
Contact us at 844.ADVIA.CU (844.238.4228).