GEINS - GAP Waiver Protection

GAP Waiver Protection

WHAT IS GAP PROTECTION?
Guaranteed Auto Protection or GAP is a Loan/Lease Balance Deficiency (GAP) Waiver (EXHIBIT 1) designed to eliminate your unpaid net loan/lease balance in the event your borrower's vehicle is stolen or damaged beyond repair (totaled). The GAP Waiver relieves your borrower of the responsibility for the full loan/lease deficiency balance that the proceeds from their primary insurance policy or any applicable third party insurance policy does not cover.

WHAT DOES THE GAP WAIVER COVER?
The GAP Waiver covers the difference between the actual cash value of the car (primary insurance company settlement, plus the actual deductible up to $1,000) and the outstanding loan/lease balance at the time of a loss, less certain deductions. It does not cover the following: (1) any refundable additions to the loan/lease amount such as service warranty contracts and credit insurance, (2) delinquent payments greater than 60 days past due, (3) late charges or other fees added after loan/lease inception, (4) any portion of the loan/lease that exceeds 150% of MSRP (new cars) or 150% of average retail book value (used cars).

FOR EXAMPLE:

Loan Balance after one year = $15,000
Primary Coverage Settlement = $10,000
GAP WAIVER = $5,000

*Gap Waiver will not cover primary deductible that exceeds $1,000.

HOW DOES MY BORROWER APPLY FOR BENEFITS UNDER THE GAP WAIVER?
If a "total loss" of the vehicle should occur:
1) Report the incident to us within 60 days from the date of the insurance company's settlement,
2) Give us a copy of the insurance company's settlement statement and check,
3) Give us a copy of your insurance policy declarations or other evidence of your insurance deductible.

BENEFITS TO BORROWER/LESSEE
Eliminates "out-of-pocket" expense for remaining loan/lease balance after loss settlement
Helps protect credit rating
Helps borrower/lessee to purchase replacement vehicle

ELIGIBLE FOR GAP WAIVER
New and used vehicles
Private passenger autos and vans
Pickup trucks not exceeding 1-ton capacity
Boats, Motorcycles, ATV's, Jet Skis, Motorhomes, Watercraft and Travel Trailers
Loans/leases with term of 84 months or less

INELIGIBLE FOR GAP WAIVER
Loans/leases with term over 84 months
Commercial vehicles
Trucks exceeding 1-ton capacity
Taxi cabs and buses
Limousines
Rental vehicles
Vehicles with equipment or conversions not installed by the manufacturer

DOES NOT PROVIDE PROTECTION FOR LOSS DUE TO
Forgery, dishonest acts of borrower/lessee
Conversion, Intentional acts of the borrower/lessee
Embezzlement, secretion or confiscation
War

LIMITATIONS
Any loan or lease that exceeds 150% of MSRP (new cars) or 150% of average retail book value (used cars)*.

ACTUAL CASH VALUE IS DETERMINED BY
Primary insurance carrier
Independent adjuster if no primary carrier covers the vehicle

Guaranteed Auto Protection is not offered as insurance coverage

*Benefits may vary by state.

For more information feel free to Contact Golden Eagle Insurance