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FAQ about Gap Insurance
GAP is only $349 in most states where offered
except as follows: Texas and Nevada where rates vary by amount
and loan term. Rates for Michigan, Montana, Nebraska and
Tennessee are $580. GAP is not available in Ct, La,
NY, Va, Wa.
Coverage for leases is $499 in most states where
offered except for Texas and Nevada where rates vary by amount
and term of lease. Lease GAP is $580 for coverage
in Michigan, Montana, Nebraska and Tennessee. Lease GAP
is not available in Ct, La, NY, Va, Wa.
1. How long
after I buy my car can I still get GAP INSURANCE COVERAGE?
You can buy GAP INSURANCE COVERAGE within the first 12
months of purchasing or refinancing your vehicle.
Leased vehicles are eligible for this program at higher rates.
2. Does the price cover me for the length of the contract ?
Our one price covers you for the entire length of your
contract up to 84 months. The maximum loan amount eligible is
$100,000 and the maximum claim payout is $50,000.
There are no additional fees.
3. Why is your coverage so much cheaper ?
In fairness to new car dealers, we don't have thousands or
hundreds of thousands of dollars per month in overhead, so Gap Insurance
is a product that can simply be sold less expensively over the
Internet.
4. Should you go out of business, will I still be covered ?
Lee and Mason who are
the administrators of the program have been in business for
over 45 years. Additionally you are
protected by
the security of buying from an "A-"
rated insurance company which supplies the Gap Insurance
policy directly to you.
Moreover, the administrators of this web site have been in the
insurance business at the same location in Tampa, Florida
since 1979.
5. If I purchase GAP insurance on line from you when
do my insurance benefits begin ?
If you pay in full by credit card and your other
information is correct, your coverage begins immediately.
6. What is the procedure to
file a GAP insurance
claim?
When your
primary insurance carrier says that your car is a total loss
or an unrecovered theft,
you provide the Gap insurance company Claim Department with a copy
of the police report along with a copy of your insurance
company's settlement check.
It's that
easy. You
will receive a policy directly from the insurance company,
which will thoroughly explain the benefits and how to file a
claim, if necessary.
7. Can I
buy Gap Insurance coverage for a commercial vehicle or a car
used in business?
No. large
commercial vehicles or strictly commercial-use vehicles are
not eligible. No livery or delivery vehicles. Vehicles used
casually in a business are okay.
Vehicles
such as Taxi cabs and delivery vans are not eligible. Call or
email if you have questions.
8. Is Gap Insurance required by my lender?
Probably not. Most lending companies who
finance cars do require full comprehensive and collision
coverage insurance but not Gap insurance; so the owner would
have to pay the depreciation difference if they had a total
loss of their vehicle and chose not to buy Gap Insurance.
9.
Wouldn’t my collision coverage pay the GAP between market value and
the loan
payoff amount?
Often not. Especially if you
finance a large amount on the vehicle due to being "upside
down" or if you finance for over 24 months. Collision coverage pays the
actual cash value of your vehicle at the time of the
loss. Without GAP coverage, your insurer would issue payment
based upon the current retail market value of your car or
truck less any deductible and would not take into
account any outstanding loan balance you may still have. They
are insuring the current value of your car, not your loan.
10. Can I buy Gap Insurance coverage for a used
car?
Our Gap Insurance Policies are available on new &
used cars, trucks and SUV's purchased or refinanced within the
past 12 months.
Coverage is only available for current model year or up to
eight years old. For example, in 2008, vehicle must be 2000
model or newer.
11. What
are some other benefits of GAP Insurance?
 | Security: Ease the
financial burden associated with the loss of your vehicle
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| Protection: Both
your vehicle and your credit rating are protected
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| Peace of Mind: For
a few dollars a month, you are assured your worries about
financial loss are minimized. |
12. What are the top 25
most stolen vehicles?
For a list of the top 25 most
stolen cars and trucks:
Click
Here
13. Other than my car or
truck being stolen and not recovered, what is the definition
of a "Total Loss"
Total
loss is a loss where the cost to repair the vehicle exceeds
the ACV. Totaling a vehicle is not just from collision but
also from comprehensive coverage: Theft, Fire, Smoke,
Windstorm, Earthquake, Hail, Water or Flood, Malicious
Mischief or Vandalism, Riot, Civil Commotion, Collision with a
bird or animal, Missiles and falling objects, Stranding,
Sinking, Burning, Collision or Derailment of any conveyance in
or upon which the auto is being transported on land or on
water.
14.
What about exclusions or what's not covered?
There is no coverage for losses or damages:
A. Resulting from the confiscation of the vehicle.
B. Losses due to wear and tear, freezing, mechanical or
electrical breakdown or failure.
C. Losses that are the result of the vehicle being operated or
used in any race, speed or any other contest.
D. Losses due to acts of war, whether or not declared,
invasion, civil war, insurrection, rebellion or revolution.
E. Losses due to conversion, embezzlement or secretion by any
person in lawful possession of the covered vehicle.
F. Any losses that occur prior to the effective date of this
policy.
G. Losses that are the result directly or indirectly from any
dishonest, fraudulent, criminal, or illegal act or arising
from an intentional act committed by you; any employee or
agent of the lender/ lessor or any dealer from whom the
lender/ lessor may acquire the financing contract.
15. In what states is Gap insurance available?
Gap Insurance is available in all states except: CT, LA,
NY, VA, WA
16. Does GAP pay if I am
uninsured?If there is
no primary insurance, GAP pays the difference between the NADA
Retail Value of your vehicle, at the time of loss, and the
outstanding balance of your loan. Most likely GAP would not
pay off the loan balance in full in this situation.
17. Can GAP be
transferred to a different vehicle or loan?
No, it cannot be
transferred to a different vehicle.
18. I am refinancing my
loan at another financial institution – can the GAP transfer
to my new loan?
No, the GAP applies
to a specific loan is
non-transferable. You can get a new policy to cover the new
loan. Also, only regular retail installment contracts are
eligible. No mortgage loans, credit lines, balloon payments
or other types of loans are eligible.
19. How is my
deductible covered by GAP?
The primary insurance
deductible is covered as part of your unpaid loan balance;
it is not “reimbursed”. GAP Insurance covers the difference between
the actual cash value (ACV) of your vehicle and the
outstanding loan balance. Since your insurance company
pays ACV less the amount of your deductible, the “gap” is
increased by this amount. When your loan balance is paid
off by GAP the deductible is paid as part of that balance.
20. Does GAP
replace my comprehensive and collision coverage?
No, GAP is not a
substitute for collision or property damage insurance.
21. I will
be using my vehicle for my business, can I buy GAP?
The policy covers commercially
used vehicles so long as they do not fit within the
definition of "Commercial
Purposes". "Commercial Purposes" is limited to livery
and delivery use such as taxi cabs, limousines or
delivery vans.
22. I
have an older car, is there an age limit on my
vehicle?
Coverage is only
available for current model year or up to eight years
old. For example, in 2008, vehicle must be 2000 model
or newer.
23. Are leased
vehicles eligible for this program?
Yes.
Effective 06/01/2008 leased vehicles may be covered
for a higher premium of $499.00 except Texas
and Nevada rates vary by loan term and loan amount.
For the states of Michigan, Montana, Nebraska and
Tennessee the rate for leased vehicles will be
$580.00
Again,
not available in Ct, La, NY, Va and Wa.
24. What are
some Commonly used automotive pricing terms?
MSRP: “Manufacturer’s
Suggested Retail Price”. This is the actual price
that is typically attached to the car via a sticker
on the window.
Invoice: This is an invoice provided by the
manufacturer that is not actual Base Cost that a
dealer pays.
Invoices have a hidden fee or "Holdback" that equals
a percentage of the MSRP or Invoice price.
Shipping: The fee charged for transporting the
vehicle to the dealer from the manufacturer.
This charge is to be passed on to the buyer without
any markup.
Hold Back: This is a non-published pricing
promotion (discount) that is given back to the
dealer by the manufacturer at the conclusion of a
sale of a vehicle.
Final Cost: This is derived by adding shipping
to the invoice amount and subtracting any rebates
and hold back.
25.
I was "up-side down" on my trade-in on my new car,
will that part of my contract be covered?
You will be covered up to 120% of the ACV (Actual Cash Value)
of your present car regardless of how or why you have a
deficiency balance. Being "upside down" or having "negative
equity" is one of the main reasons people need GAP
insurance coverage from a financially strong company.
26. I was told this GAP
coverage was priced at four to six hundred dollars at the dealership.
Is the coverage the same ?
Yes. While there are
slight variations, To the best of our knowledge the coverage
is about the same.
27. What is a GAP
Waiver?
A. Gap Waiver is an agreement that eliminates all, or most, of
the loan balance deficiency that often remains when the
insurance settlement doesn't cover the entire remaining
balance (plus the insurance deductible). It closes the "GAP"
by relieving the borrower of most or all of the responsibility
to pay a loan deficiency balance that is not covered by the
primary insurance policy or any applicable third party
insurance policy.
28.
I am currently buying a car overseas but
intend to ship it to the U.S. Should I buy the coverage now or
wait till the car is in the U.S.?
A. Since coverage only applies to losses that occur in the
U.S. and it's territories, you should wait to purchase
coverage until the car is in the U.S.
29. Where can I see an actual
example of the insurance company's policy?
A. For an actual copy of the GAP insurance
policy:
Click Here
30. If my loan has a balloon payment
can I still buy GAP insurance?
A. No, loans with balloon payments are
not eligible.
31. Are loans over $100,000 eligible
for your GAP insurance.
A. No, loans in excess of $100,000 do
not qualify for this program.
Only
$349 buys Gap Insurance
Coverage for up to 84 months in most states.
Ordering from our secure web site is fast and
easy.
Please have the date your car or
truck was purchased, total purchase price of the vehicle,
amount financed, annual percentage rate (Not to exceed 12.5
APR) name and address of lender, vehicle year, make, model.
Please
click here for information if
you have a quality automotive related web site and would like to
exchange links.
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