Every year, numerous vehicles are deemed total losses due to accidents, theft, or natural disasters. However, many drivers are unaware that they remain responsible for paying the difference between their insurance settlement and the remaining balance on their vehicle loan, along with the deductible.

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Depreciation exacerbates the issue, as insurance settlements are based on the car's actual cash value at the time of loss, rather than the original purchase price. Consequently, customers can find themselves burdened with a substantial remaining balance.

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Fortunately, with Guaranteed Asset Protection (GAP) insurance, you can avoid being caught off guard. In the event of a total loss, GAP insurance covers the deficiency balance on your car loan after the primary insurance settlement is applied. This ensures that you start fresh without any outstanding debts, enabling you to concentrate on acquiring a replacement vehicle.