Guaranteed Asset Protection Insurance (GAP)

What Is GAP?

GAP covers the borrower’s responsibility for the difference between the outstanding loan or lease balance and the insurance settlement for a totaled or stolen vehicle.

You can sell GAP to your customers in one of two ways, depending on state regulations:

1. As an insurance policy
   
   
2. As a Deficiency Waiver backed by a Contractual Liability Policy (CLIP)

Both are underwritten by the Assurant Solutions companies: American Bankers Insurance Company of Florida and American Security Insurance Company. Assurant Solutions companies are leading providers of specialty insurance products and services marketed nationally and internationally.

Your Customer Benefits:

• Pays the difference between the insurance settlement and the loan or lease balance up to the policy/waiver maximum
• Frees the customer from having to make payments on a vehicle he or she no longer owns or uses
  
• Also frees the customer to replace property lost due to an accident or theft more quickly

Your Dealership Benefits:

• An easy sell. In today’s economic environment with more people taking advantage of low- and no down payment loans, the demand for GAP is stronger than ever
• Earns extra income. Example: If you sell 75 vehicles a month (900 annually) and earn $225 or more per contract, you could earn an extra $50,625 of F&I profit annually
• Builds relationships. Providing your customers with value-added products builds strong customer relationships that translate into customer loyalty and encourage repeat business