Guaranteed Asset Protection Insurance

What is GAP?

If your customers vehicle becomes totaled in an accident or stolen and not recovered quickly, what they receive from their auto insurance company may not be enough to pay off what is owed on that vehicle. Typically, their insurance policy will only cover the actual cash or market value of the vehicle. In some cases, this can be thousands of dollars less than what is owed to the finance company. This gap is what GAP insurance can help cover.

Example of how it works:

Loan Payoff on date of loss $24,500

Insurance Settlement* $19,800

GAP ($4,700)

Insurance Deductible** ($500)

Potential Out of Pocket Expense ($5,200)

*actual cash value of vehicle

**excluding Arkansas and Illinois

With GAP insurance, the potential out-of-pocket expense to your customer is covered. The finance company receives the full payoff and your customer is left with the peace of mind knowing they are debt free from this unfortunate situation.

Guaranteed Asset Protection (GAP)

Arkansas F&I can provide your dealership and your customers with the following advantages.

Customers:

· Protection is available for new and used vehicles.

· Protection is available on loans and leases

· Protection is available for vehicles up to $100,000 (MSRP/NADA)

· Deductibles up to $1000 are covered in most states

· Coverage will protect a GAP of up to $50,.000

· Pays even if no insurance is in effect at the time of loss

· No waiting period

· Cost is only pennies at day

Dealership:

· Increased income potential due to the profit of adding GAP to your product portfolio

· Increased income potential due to repeat business from customers knowing you helped take care of them

· Increased income potential for high sales penetration due to the low cost of GAP

· Improved Lender relations since GAP helps to reduce loan defaults