GAP Protection

How Gap Works

GAP is the difference between your vehicle's actual cash value and the loan balance.

Used Vehicles GAP

Program Guidelines 1

Amount Financed: Up to $100,000
Term: Up to Up to 84 months
Maximum Benefit: Up to $50,000
Deductible: Up to $500.00
Available On: Loans up tp 125% M.S.R.P. for new or 125% N.A.D.A. average retail value for used. Any amount financed in excess of this limit is not covered.

Program Guidelines 2

Other: Loans must have uniform monthly payments for the full term of the loan unless Balloon or Lease is checked on the front page of the Addendum. GAP Contract must be sold at the time the vehicle finance agreement is executed. Available for sales through independent non-franchised dealers only. No coverage is provided if the loan is retained by the selling dealer or an affiliate. When a total loss occurs, American Auto Guardian, Inc. must be notified within ninety (90) days of the date of loss or ninety (90) days of the insurance settlement. Coverage varies by state. See GAP Contract for variations.

Excluded Vehicles: Aston Martin, Bentley, Daewoo, Ferrari, Lamborghini, Lotus, Maserati, Rolls Royce, Saab, Yugo, motorcycles, recreational vehicles (RVs), boats, trailers, all-terrain vehicles (ATVs), principally off road use vehicles and unregistered vehicles.

Alaska & Utah: The dealer must obtain a Limited Line Producer License for GAP before sale of the GAP Waiver program.

Colorado: The price that can be charged to the customer is limited by state regulation. Contact the Administrator for further details.

Indiana: GAP may not be sold if the amount financed, less the cost of the GAP Addendum, less the cost of credit insurance, and less the cost of warranties is less than 80% of MSRP for a new vehicle or 80% of the NADA average retail value for a used vehicle.

New Hampshire: The dealer must register with the NH Insurance Department as an obligor of Consumer Guaranty contracts.

Oregon: GAP may not be sold for more than 5% of the amount the borrower finances under a finance agreement.

South Carolina: GAP may not be sold if less than 80% of MSRP for new vehicles, or less than 80% of NADA average retail value for used vehicles is financed.

Texas: GAP may not be sold for more than 5% of the amount financed pursuant to the retail installment contract.

New Vehicle GAP

Program Guidelines 1

Amount Financed: Up to $100,000
Term: Up to 84 months
Maximum Benefit: Up to $50,000
Deductible: Up to $1000.00
Available On: Loans up tp 150% M.S.R.P. for new or 150% N.A.D.A. average retail value for used. Any amount financed in excess of this limit is not covered.

Program Guidelines 2

Other: Loans must have uniform monthly payments for the full term of the loan unless Balloon or Lease is checked on the front page of the Addendum. GAP Contract must be sold at the time the vehicle finance agreement is executed. Available for sales through new car franchised dealers only. No coverage is provided if the loan is retained by the selling dealer or an affiliate. When a total loss occurs, American Auto Guardian, Inc. must be notified within ninety (90) days of the date of loss or ninety (90) days of the insurance settlement. Coverage varies by state. See GAP Contract for variations.

Excluded Vehicles: Aston Martin, Bentley, Daewoo, Ferrari, Lamborghini, Lotus, Maserati, Rolls Royce, Saab, Yugo, motorcycles, recreational vehicles (RVs), boats, trailers, all-terrain vehicles (ATVs), principally off road use vehicles and unregistered vehicles.

Alaska & Utah: The dealer must obtain a Limited Line Producer License for GAP before sale of the GAP Waiver program.

Indiana: GAP may not be sold if the amount financed, less the cost of the GAP Addendum, less the cost of credit insurance, and less the cost of warranties is less than 80% of MSRP for a new vehicle or 80% of the NADA average retail value for a used vehicle.

Colorado: The price that can be charged to the customer is limited by state regulation. Contact the Administrator for further details.

New Hampshire: The dealer must register with the NH Insurance Department as an obligor of Consumer Guaranty contracts.

Oregon: GAP may not be sold for more than 5% of the amount the borrower finances under a finance agreement.

South Carolina: GAP may not be sold if less than 80% of MSRP for new vehicles, or less than 80% of NADA average retail value for used vehicles is financed.

Texas: GAP may not be sold for more than 5% of the amount financed pursuant to the retail installment contract.