If your vehicle is declared a total loss, your auto insurance company may not cover the amount needed to pay off your finance or lease contract. Auto insurance companies will generally pay the market value of the vehicle, minus the auto insurance deductible (if applicable).
So who pays the remainder? You do, unless you have Guaranteed Auto Protection (GAP)
1.
GAP is designed to protect you from an unexpected financial obligation if your vehicle is declared a total loss from causes such as theft, accident, fire, or flood.
The GAP program will pay the difference between your vehicle's market value and the balance on your finance or lease contract, including up to $1,000 of your auto insurance deductible (if applicable) in most states.
| Finance or lease contract payoff amount |
$23,000 |
| Minus total auto insurance settlement |
-20,0002
$3,000 |
| Plus auto insurance deductible |
+1,0003 |
| Total out-of-pocket expense |
$4,0004 |
| Minus GAP payment5 |
-4,000 |
| Total owed to financial institution to pay off finance or lease contract |
$0 |
GAP is available only at the time of vehicle purchase or lease.
| xA (Depending on the term of finance or lease contract) |
From $335 to $500 |
| xB (Depending on the term of finance or lease contract) |
From $335 to $500 |
For GAP customer service, call 1-800-255-8713.
1 - Scion Solutions currently only available in California.
2 - Total auto insurance settlement before deductible is applied.
3 - GAP includes up to $1,000 of your auto insurance deductible (if applicable) in most states.
4 - Deficiency balance at time of total loss.
5 - Less any delinquent payments, taxes, and past-due charges. See agreement, certificate, or waiver for complete details. Some restrictions may apply.
6 - Type and availability of GAP product varies by state. GAP may not be available on finance and lease contracts in some states.
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