Guaranteed
Auto Protection - GAP
GAP is a type of protection that covers finance or lease contracts
against the difference between the amount owed on a vehicle at the time
of a total loss and the actual cash value (ACV) of the time of the loss.
There are
two types of GAP protection: GAP insurance and Debt Cancellation
Agreement.
In Oregon
GAP is regulated as an insurance product so GAP Insurance is sold. The
dealership is required to have a Business Entity License which is
issued by the Oregon Insurance Division: No test required. In addition,
at least one employee of the dealership is required to have an
Individual Producer License (no test required). The forms can be
downloaded from the Insurance Division WEB site, or we will be happy to
provide them. Because GAP is an Insurance Product in Oregon, the
selling price is determined by the rate filed with the Insurance
Division by the GAP Insurance Company. The dealer is paid a commission.
In
Washington, GAP is sold as a Debt Cancellation Agreement which becomes
an addendum to the contract. No licenses are required to sell GAP in
Washington and is sold for a price determined by the dealer.
GAP is the
number 1 seller in many dealerships. Customers easily perceive its
value and find it affordable, while lenders commonly accept it as a
soft add (A product the dealer is authorized to add without getting
prior approval) for finance contracts because they like the protection
it affords.
We believe
a GAP product must include the following components:
- Insured
by an AM Best "A" rated insurance company
- All-risk
protection
- No MSRP
or ACV restrictions
- Coverage
for motor vehicles valued up to $100,000 at time of sale
- Provide
deductible coverage up to $1,000
- No age
or model year restrictions
PLEASE
CONTACT US FOR GAP AND WE WILL QUICKLY GET YOU GOING
