WHAT IS GUARANTEED AUTO PROTECTION?

Guaranteed Auto Protection, or GAP, offers protection against financial liability for individuals who finance a new or used vehicle. GAP protects against financial loss in the event that the vehicle is damaged beyond repair (totaled) or stolen and never recovered. With GAP, the covered deficiency balance is then waived.

WHAT DOES GAP COVER?

GAP covers the difference between the market value of the vehicle and the loan balance, less delinquent payments more than 90 days past due, late charges, refundable service warranty contracts and other insurance related charges. In the event a deficiency exists, the program will cover the borrower's insurance deductible, up to $1,000.

Specific Coverages Include:

* $50,000 maximum benefit limit.
* Maximum vehicle value at financial agreement inception of $100,000.00.
* Covers up to $1,000.00 of the borrower's physical damage deductible.
* All-risk protection for collateral.
* Coverage extends to both new and used vehicles.
* Up to seventy-two (72) months of coverage.
* Fully cancelable within sixty (60) days.
* All Finance Contracts are eligible for coverage.
* Limited vehicle exclusions: Rare, Exotic, Unusual Kit, etc.

Why is this product needed?

Auto insurance companies will only pay the ACV of vehicle in the event of a total loss or theft.

Does the customer need GAP?

* Are they financing their vehicle?
* Is their down payment less than 25% of the vehicle purchase price?
* Is their financed term longer than 24 months?
* Do they drive over 12,000 miles a year?

If they answered 'yes' to two or more of these questions, they will need GAP in the event their vehicle is declared a total loss or if their vehicle is stolen or totaled.

In addition, GAP will:

* Enable the customer to purchase a new vehicle without being penalized for their previous vehicle being totaled.
* Protect their assets and credit standing without costly out-of-pocket expenses.