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What is GAP and Why Should You Have it?

What is GAP and Why Should You Have it?

09/13/2018

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What is GAP? GAP stands for Guaranteed Asset Protection. This protection will help bridge the “gap” between the amount you owe on your auto loan and the amount the insurance company would pay in the event that your vehicle became totaled or stolen.

I personally have GAP for my own vehicle loan and definitely wouldn’t go without it. I’ve been fortunate enough to not have to use it, but you never know what could happen. I believe in being prepared for the unexpected.  Paying a few extra dollars for the added GAP insurance provides me with peace of mind.  I never want to be in a position of owing money on a useless vehicle.

Here’s an example of how GAP works: Let’s say you owe $12,815 on your auto loan. In the middle of the night, a storm knocks a tree onto your vehicle. Your insurance has decided that your car is only worth $9,000 (auto insurance companies frequently pay settlements that are far less that NADA valuations). After the payout you are left with an additional $3,815 that you owe on the loan, for a car that you can’t even drive. This is where GAP comes in! Your GAP Coverage will take care of the remaining $3,815 loan balance. Essentially, it would help you clear your debt and allow you to start fresh with a new vehicle purchase.

GAP insurance would be a small addition to your monthly payment and can be added right into your auto loan with Atlantic. GAP is also offered by car dealers, but be careful.  Purchasing GAP from a dealership tends to be more expensive. Take it from me, I learned the hard way. I purchased my GAP insurance from a dealership and paid about $400 more than I would have if I had purchased it through the credit union.

Here’s an additional bonus when purchasing GAP through Atlantic, we offer GAP Plus. GAP Plus will give you a supplementary $1,000 credit towards the purchase of a replacement vehicle financed through Atlantic. To take advantage of this $1,000 credit, you must finance your vehicle with Atlantic and use it within 90 days from the GAP Claim payment.

Protect yourself against the unexpected with GAP! Better yet, save yourself some money and finance your vehicle with Atlantic. Ask your Atlantic loan officer about GAP during your next vehicle purchase or refinance. Eligible vehicles include: Automobiles (including light trucks and vans), Motorcycles, Snowmobiles, ATVs, Recreational Vehicles and Watercrafts.

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