With the prices of cars today going out of sight, it is important to make sure you are protected in the event of an accident. In many cases, your insurance will not pay off your vehicle if it is totaled in an accident. That is why OpenRoad Lending offers you GAP coverage to protect your investment and your credit rating.
What is GAP Coverage?
GAP stands for Guaranteed Auto Protection. It protects YOU in the event of a total loss of your vehicle. GAP comes into play:
- If your vehicle is in an accident and is a total loss or is stolen and non-recoverable. This also includes flood, fire, hurricanes, etc.
- Your insurance will pay the actual cash value of the vehicle (what the vehicle is worth, not what you owe)
- GAP will pay the remaining amount on the loan plus your insurance deductible.
- You have a remaining a balance of $23,000 on your loan. (The remaining balance that needs to be paid before you can purchase a new car)
- Actual cash value of your vehicle after depreciation is $18,400
- You car is totaled and your insurance pays $17,400 for your car (the car’s book value) after your $1,000 deductible,
- GAP will pay the remaining $5,600 leaving you with a balance of $0.
- You are out of pocket NOTHING and can get into a new car faster.
If you are interested in adding GAP coverage to your car, have your VIN number ready and call your Loan Care Agent at 1-888-536-3024. To learn more about the benefits to GAP insurance, click here.
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