Total Loss Protection Plan (GAP)

It’s called the “gap”. It’s the difference between the Amount Owed on your Retail Installment Sales Contract/Lease Agreement and the Actual Cash Value of your vehicle at the time of a Total Loss. The Amount Owed does not include missed payments, payment extensions, deferred payments, accrued interest, late fees, disposition fees, penalty fees, early termination fees, or finance charges incurred after the date of loss. Also, if the insurance company valuation used to calculate the Actual Cash Value is less than 90% of the NADA value of your vehicle, the NADA value will be used in determining the “gap” amount waived (which means a smaller amount may be waived).

If your car is determined to be a Total Loss, this “gap” could translate into thousands of dollars that you would still owe after the settlement from the auto insurance company. The Plan excludes total loss claims denied by your automobile insurance company. This is an optional waiver product and not a product of insurance. It is not required for you to obtain financing for the purchase or lease of a vehicle.

How It Works

Gap Coverage

For example:

$15,025 (Amount Owed at Date of Loss)*
-$11,505 (Actual Cash Value = $10,404 Sum of Insurance Settlement + 1,101 Adjustment to 90% of NADA)
= $3,520 (“Gap” Amount)

(Source: Actual Claim Data)
*This amount will be reduced by amounts owed due to missed payments, over-financing, penalties, interest, etc.
added to your Retail Installment Sales Contract/Lease Agreement.

Two Options

GAP* Gap does not waive your insurance deductible.

GAP PLUS (GPP)* Gap Plus (GPP) waives your insurance deductible up to a maximum of $1,000. It is included in the calculation to determine the amount waived.

*Both options may not be available in all states.

Additional Information

  • Claims must be submitted within 90 days of auto insurance company settlement or date of loss if no insurance exists.
  • Upon refinancing, the contract will terminate. A refund will be made within 90 days only upon written request by the customer.
  • This information is intended to provide only an outline of the terms and conditions of the Total Loss Protection Plan described in this brochure and should not be relied upon at the time of purchase or lease of your vehicle. For exact terms and conditions, please review the Total Loss Protection contract itself.
  • Ask your salesperson or Finance Manager for the Total Loss Protection/Gap option you prefer.

Plan Specifics

  • Available for New and Used vehicles valued or financed up to $100,000
  • Depending on the option you choose, may waive up to $1,000 of your insurance deductible
  • The maximum amount that may be waived is the lesser of $50,000 or the amount actually owed on the retail installment sales contract/lease agreement as of the date of loss
  • Available on both retail sales and leased vehicles