Protective Guaranteed Asset Protection (GAP)
In the event of a total loss due to unrecovered theft, collision, fire or any insured peril, your customer's vehicle asset may be worth less than the amount they owe on their loan at the time of total loss. In many cases this will leave them 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.
How GAP Coverage Works