GAP Waiver Protection
GAP Waiver provides supplemental protection to a borrower’s primary insurance and is designed to help borrowers avoid financial loss in the event of total loss or unrecovered theft. The difference between the loan/lease net payoff amount and the actual cash value (ACV) paid by the primary insurance settlement produces a deficiency balance or “gap.” This remaining loan/lease balance is covered (or waived) with GAP protection.
Additional Benefits of GAP Waiver Protection:
Borrower Benefits
- Saves money by reimbursing the insurance deductible (up to $1000) when a deficiency balance remains after a total loss
- Eliminates the risk of negative equity
- Gives instant equity with $1000 for a replacement vehicle when financed by the same lender
- Provides a positive, quick, and fair claims experience
Lender Benefits
- Reduces charge-offs and GAP exposure allowing more loans to be made
- Ensures quick payment for GAP claims within 7 days
- Prevents negative interaction with borrowers due to deficiency loan balances
- Promotes customer retention by providing $1,000 toward a replacement vehicle
Dealer Benefits
- Generates fee revenue by allowing markup from the lender
- Promotes customer retention by providing $1000 toward a replacement vehicle
- Prevents unfavorable interaction with customers due to negative equity situations
- Avoids complaints from dissatisfied customers after poor claims experience
Check out The Power of GAP: Claim Spotlight
