How GAP can protect your auto loan

It is common knowledge that after you purchase a vehicle, its value goes down as soon as you drive it off the lot. That being said, if you get in an accident the second you pull off that lot, the vehicle will not be worth the balance of the loan you took out for it, meaning there’s a financial gap between the value of the car and what you owe, creating a loan-to-value deficit.

You can protect yourself from having to pay the difference by purchasing GAP, or Guaranteed Asset Protection, for your vehicle. In the event of an accident where your car is totaled, GAP will help pay off the difference in the value of your car that is paid by your auto insurance and the balance of your auto loan. With GAP coverage, you avoid any out-of-pocket expenses to pay off your auto loan.

There are many factors to consider before purchasing GAP, including how much equity you have in your vehicle. GAP will not pay for late fees, interest, credit protection or service contracts that could be cancelled and returned to the loan balance or the remaining balances due to over-financed loans.

Interested in learning more about GAP? Watch our GAP video, which explains GAP and how it can help protect your finances. If you have an auto loan with Travis, you can add GAP coverage. Call (800) 787-9908 during normal business hours to learn how.

GAP insurance GAP brochure