Coverage That Gives You Confidence: Guaranteed Asset Protection (GAP) 101

Dealing with the aftermath of totaling your car or having it stolen is hard enough without worrying that your insurance won’t cover your loan balance.

Yet, sometimes the worst case scenario happens— your vehicle is gone, but the loan payments aren’t. That’s where Guaranteed Asset Protection, or GAP, comes in!

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Ready to see how it works? Make sure your car wreck doesn’t wreck your finances with our easy guide to GAP!

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What is GAP?

GAP coverage pays off your loan or lease in the event your vehicle gets totaled or stolen and never recovered, and your insurance does not cover the full price of your loan. GAP enhances your existing comprehensive, collision, or liability coverage, but is not a replacement for it. 

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GAP coverage through Community South is available for new or used vehicles, refinanced loans, and offers coverage for loan terms up to 84 months!

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Is GAP for me?

While GAP sounds great, it isn’t for everyone! 

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Typically, if your vehicle is worth more than your loan or lease balance, your insurance will cover the loan in the event of a total loss; you won’t need GAP coverage. However, if your loan or lease is more than the vehicle’s current market value, you should consider GAP coverage! 

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For instance, imagine you purchased a truck for $37,000 from the dealership and made a $7,000 down payment. Two years later, your vehicle gets stolen, and the insurance company says it’s only worth $25,000. Without GAP, you're stuck paying thousands of dollars out of pocket for a vehicle you can't drive. With GAP, the gap between what you owe and what your insurance will pay is closed, and you’re ready to hit the road!

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Whether you’re driving down well-known roads or cutting a new path, your next adventure is right around the corner! Adding GAP coverage to your auto loan is as simple as asking a Community South team member or contacting your local Community South branch.

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Hit the road with coverage that gives you confidence, today!