GAP Warranty Information for Car Dealers

GAP Warranties are designed to relieve the consumer of the responsibility for the remainder of their car loan balance that their primary insurance carrier may not cover in the event of a total write off or loss. Essentially, GAP protects consumers from substantial losses in the event that their car is written off, declared a total loss, or is stolen.

Most consumers will be startled to discover that in the event of a Total Loss, their auto insurance company will generally only pay up to the "book value" of your car - not the amount that they still owe on your car loan! By offering GAP Warranty to your customers you can ensure that they never get this nasty surprise!

In the event of a total loss of a vehicle, the difference between what the consumer still owes on their car loan vs. the “book value” the insurance company pays out is called “gap” – money that the consumer will have to pay out of pocket, even if the accident wasn’t their fault!

GAP Warranties are designed to relieve the consumer of the responsibility of this “gap”. Purchased when the consumer buys their car, GAP will make up the shortfall if the car is ever written off due to an accident or theft. GAP gives your customers the protection they need when their auto insurance leaves them.