What is it?
If you have “full coverage” auto insurance and get into an accident, your insurance company will pay the cost of repairs to your vehicle, minus your deductible. But what happens if your vehicle gets totaled, lost, or stolen and not recovered?
Most insurance companies pay Actual Cash Value (ACV), and in many cases, that ends up being thousands of dollars less than what you still owe on your loan. What’s left is called the GAP.
That’s where SideCars comes in. We pay the difference and even your insurance deductible up to $1,000!
Why GAP insurance is so important:
When purchasing a new vehicle, today’s buyer puts little to no money down and even rolls taxes, fees and negative equity from previous vehicles into 5, 6 or 7 year auto loans.
The problem with longer term loans is that for the first few years, a large percentage of the payments are applied to interest instead of principal. The first few years are also when your vehicle loses value at its fastest rate, so while your vehicle is depreciating at it’s fastest, the amount that is being paid down is at its lowest. This leaves many people faced with major negative equity.
In addition, the improved safety features of new vehicles, while great for protecting passengers’ lives, dramatically increase the cost of repairing a vehicle after a collision. With these new features like front and side curtain airbags, crumple zones and engine mounts designed to drop the engine right out of the vehicle so as to not crush the passengers’ legs, the likelihood that even a modest accident will result in total loss of a vehicle, is dramatically increased. This means more GAP claims.
How it works:
Loan/lease payoff – $20,000
Insurance settlement (ACV) – $15,000
Deductible – $1,000
GAP protection – $6,000
Your out-of-pocket expense – $0
Our plan is one of the most comprehensive in the industry, protecting you from financial disaster, should a total loss occur.
It includes the following:
Day One coverage for up to $50,000
Coverage for up to 150% of MSRP/NADA retail
Available on leases and loans up to 84 months
Pays the deductible on your insurance up to $1,000
Fully backed by an A.M. Best – “A” Rated Insurer