GAP Premium Fraud: How Dealership Misconduct Can Leave You Financially Exposed
What Is G.A.P. Insurance? G.A.P. stands for Guaranteed Asset Protection . It is a specialized form of insurance or waiver that covers the "gap" between the actual cash value (ACV) of a vehicle and the remaining balance on a loan or lease if the vehicle is declared a total loss due to theft, accident, or natural disaster. Here’s how it works: If your car is totaled and your insurance company only pays $20,000 but you owe $26,000 on your loan, you’d still owe $6,000. GAP coverage is designed to cover that $6,000 difference—protecting you from paying out of pocket for a vehicle you no longer have. The Purpose of GAP Insurance GAP insurance offers financial peace of mind. For consumers who: Made a small down payment, Financed a vehicle for a long term (60+ months), Purchased a vehicle that depreciates quickly, or Rolled over debt from a previous car loan, GAP insurance can be a lifesaver in the event of a total loss. It ensures you aren’t stuck paying thousa...