Home | F&I Solutions | Powersports | GAP Coverage | XtraRide Powersports GAP: Guaranteed Asset Protection
XtraRide Powersports GAP Coverage
In the event of a total loss due to unrecovered theft, collision, fire or any insured peril, the powersport asset may be worth less than the amount owed on the loan at the time of total loss. In many cases this will leave your customer responsible for paying the difference. If a covered loss occurs, GAP coverage will, in most cases, pay the difference between the actual cash value and the scheduled balance owed to the lender, net of refunds, plus the insurance deductible.
- Payable in the event of a total loss
- Covers the difference, in most cases, between the scheduled asset pay-off amount and the asset’s actual cash value net of refunds
- Covers customer’s primary insurance deductible up to $1,0001
- Enhanced customer satisfaction
- Increased customer retention because you are an essential part of the GAP claim notification process
- Maximize F&I profit potential
How GAP coverage works
|
Primary Insurance Coverage |
|
|
Actual Cash Value at time of loss |
$17,000 |
|
Insurance Deductible |
- $1,000 |
|
Insurance Check |
$16,000 |
|
GAP Coverage |
|
|
Loan Balance Payoff2 |
$20,000 |
|
Insurance Check |
- $16,000 |
|
Remaining Loan Balance |
$4,000 |
|
GAP Coverage Benefit |
$4,000 |
|
Amount you owe3 |
$0 |
Limits on benefits
Total amount financed not to exceed 150% (120% for Personal Watercraft and Sport Boats) of MSRP if new or NADA Appraisal Guide if pre-owned.
Maximum GAP benefit payment not to exceed $25,000 (please refer to the addendum/policy for specific information).
2 Payment of deductible not available in all states.For purposes of the GAP calculation, this will generally be the lesser of the scheduled payoff balance or the actual payoff balance, minus refunds, if any, due to be received for the early termination of products such as credit insurance and service contracts.
3 The GAP coverage benefit might not cancel the entire amount owed at the time of loss. If debt-to-value exceeded 150% (120% for Personal Watercraft and Sports Boats) on the GAP effective date, the GAP coverage benefit will be adjusted by subtracting the amount by which debt-to-value exceeded 125% or 150% (depending on contract).
