Vehicles lose value very quickly and chances are, you will have negative equity in your vehicle at some point in time during the life of your auto loan. If you have an accident that totals your vehicle during that time, your auto insurance company may not pay off the full balance of your loan. Then, you are left to pay the rest of the debt yourself. Guaranteed Asset Protection (G.A.P.) insurance closes the gap between the vehicles market value and the actual payoff.
In the event of a total loss, not only will it pay off your balance, it will also give you $1,000 toward the purchase of your next vehicle if you finance with US.
