Dealer Guaranteed Asset Protection (GAP) is a debt cancellation product that helps borrowers pay off their vehicle loan in the event of a total loss. Since insurance settlements are based on the car窶冱 actual value as of the date of loss, they are often less than the borrower窶冱 loan balance. This creates a deficiency balance or 窶徃ap窶 that could jeopardize repayment. GAP allows the lender to waive the deficiency balance relieving the borrower from payment of this debt.
Features
NAC
- Maximum MSRP/Retail Book: $100,000
- Maximum Losses Waived: $50,000 (not to exceed 125% of
Applicable Retail Book for independent dealers and 150% for
franchise dealers)
- Maximum Term: 96 months
- Coverage allowed on new & used cars, light trucks
- Insurance deductible coverage: $500 for independent and
$1,000 for franchise
- Cancellation fee: $50 (unless prohibited by state law)
- Claims follow carrier claim procedures
- Maximum retail price is determined by lenders
Safeguard
- Maximum MSRP/Retail Book: $150,000
- Maximum Losses Waived: $50,000 (not to exceed 150% of Applicable Retail Book)
- Maximum Term: 84 months
- Coverage allowed on new & used cars, light trucks
- Insurance deductible coverage: $1,000
- Cancellation fee: $25 (unless prohibited by state law)
- Online remittance and cancellation
- Claims must be reported within 90 days of the date of loss
NSD
- Maximum MSRP/Retail Book: $100,000
- Maximum Losses Waived: $50,000
- Maximum Term: 84 months
- Coverage allowed on new & used cars, PowerSport, recreational and marine vehicles
- Insurance deductible coverage: $1,000
- 30 day delinquent payment coverage protection