GAP Protection

Understanding GAP Protection

"GAP" means the difference between your vehicle's actual cash value and your remaining lease payout. Fortunately, we offer excellent GAP protection to our drivers. Customers count on this coverage to pay the difference between the insurance claim and their remaining loan. Therefore, contact our financing team today to use these helpful services!

What is GAP Insurance?

Guaranteed Asset Protection (GAP) insurance actively protects your financial investment. Specifically, it helps when you owe more on a loan than the current value of your equipment. This situation happens when new equipment depreciates quickly in the first few years. Meanwhile, you still owe a large amount on your main loan.

How GAP Coverage Works

Here is exactly how this protection works for you:

1. Immediate Depreciation: Equipment loses value as soon as you buy it. If an accident occurs, regular insurance only pays the current market value. Consequently, this standard payout might not cover your full loan balance.
2. The Financial Gap: A stolen or completely wrecked truck creates a huge problem. The standard insurance settlement might leave a large outstanding loan balance. As a result, you must pay that remaining difference out of pocket.
3. Full Protection: GAP insurance steps in to cover this exact financial shortfall. It pays the difference between the actual cash value and your loan balance. Ultimately, it covers your truck or trailer reefer up to the maximum policy limit.

Is GAP Right For You?

GAP insurance remains optional but highly beneficial for most drivers. It greatly helps buyers who finance equipment with a small down payment. Furthermore, it protects buyers with loan terms longer than 48 to 60 months. Overall, costs vary based on your equipment value, loan length, and personal driving history.