What is GAP?
If a vehicle is totaled or stolen, the borrower's primary insurance company settlement can be significantly less than the outstanding loan or lease balance. This may create a deficiency balance or a "gap" resulting in a serious financial hardship for you, the borrower. The "gap" may even jeopardize repayment of the loan. GAP is designed to relieve you of the responsibility for the remainder of the loan or lease balance that your primary insurance carrier does not cover.