In today’s fast-paced world, your vehicle’s real value will decline faster than the balance you owe on your vehicle loan.
In the event of a collision, and subsequent vehicle write-off, GAP Protection product covers you for any shortfall between your outstanding loan amount and the value of your vehicle (subject to certain limitations).
Your outstanding loan is defined as the total amount financed inclusive of GST, extended warranties, protection packages, and insurance contracts, and is not limited to the replacement value of your vehicle. In many cases GAP coverage extends to include any negative equity rolled into a deal.
Balance owing on loan: $18,000
Insurance Settlement: $11,000
Difference (Shortfall or GAP): $7,000
Loyalty Bonus* +$500
Companion GAP pays: $7,500!