Gap Waiver Insurance

total loss of borrower's vehicle

After a total loss to the borrower’s vehicle due to accident/theft, Gap Insurance covers the difference between the loan payoff and the actual cash value settlement made by the borrower’s auto insurance policy.

WHY YOUR BORROWERS NEED GAP COVERAGE

Low or No Down Payments

Steep / Volatile Depreciation of Certain Vehicles

Slow Amortization of Longer Term Loans

Negative Equity ‘Rolled Into’ New Loan From Prior Loan

Primary Insurers ‘Totaling’ Vehicles with Less Damage

Value-Priced Protection

Benefits

Protects the Lender from Deficiency Balance Write-Offs

Preserves Good Customer Relationship with the Borrower

Creates Fee Income for the Lender

Encourages Financing of New Replacement Vehicle through Lender

FEATURES

Protects the difference between Loan Balance Due and Actual Cash Value settlement

Covers Loans, Balloon Loans, and Leases, both New and Used vehicles

Borrower’s Deductible covered up to $1000

Optional Purchase by borrower; or discounted rate for Blanket Coverage of entire portfolio

Protects High Loan-to-Value Financing

Optional Coverage: $1000 toward Replacement Vehicle financed with the Lender

gap waiver chart
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