Blog - Auto Shield Warranty Experts
Covers the shortfall between the remaining loan balance on the vehicle and the settlement you may receive from your insurance company. This essentially puts you in a break-even situation but you will still need to replace your vehicle.
GAP insurance is an optional, add-on car insurance coverage that helps drivers cover the “gap” between the amount owing on their car and the car’s actual cash value (ACV) in the event of a motor vehicle accident.
Guaranteed Asset Protection (GAP) is similar to an airbag for your automobile loan. GAP Insurance may help fill the gap between what your vehicle insurance will have to pay and what you owe on your loan if deemed a potential loss.
Total loss means that when the cost of repairing the vehicle exceeds a certain percentage of the vehicle’s actual cash value.