GAP insurance
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Guaranteed Asset Protection (GAP) insurance (also known as GAPS) was established in the North American
GAP insurance covers the amount on a loan that is the difference between the amount owed and the amount covered by another
There are two ways of getting GAP coverage. The first type is an insurance policy sold by a broker. The second type is a
Exclusions to GAP insurance vary by country or state. Some exclusions include a maximum loss limit of $50,000 while others require a loan term of less than 84 months.[5] GAP is an optional purchase, but many states in the US require that a car dealership offer GAP at the point of purchase. Other states require insurers to offer GAP if a client requests it.[6] States such as Louisiana require that the purchaser sign a disclosure document as proof.[7][8] Although GAP is optional, some finance companies require GAP as a condition to obtaining a loan.[2] The Truth in Lending Act excludes GAP premiums from financial charges if GAP was not required by the creditor, the premiums were disclosed in writing, and the consumer provides a written request for the insurance.[citation needed]
See also
- GAP waiver
- Insurance in the United States
- Insurance law
References
- ^ a b "Gap Insurance". Retrieved 19 June 2013.
- ^ a b Reed, Philli[. "Gap Insurance: How It Impacts Your Car Loan or Lease". Retrieved 19 June 2013.
- ^ Sage, Bobbie. "Gap Car Insurance Coverages". Archived from the original on 13 May 2013. Retrieved 19 June 2013.
- ^ Caucutt, Joshua. "What Is Gap Insurance Coverage for Cars – Is It Worth It?". Retrieved 19 June 2013.
- ^ "What's behind GAP loss ratios?". cbtnews.com. May 16, 2017.
- ^ "RCW 48.22.060". Retrieved 19 June 2013.
- ^ "Louisiana Motor Vehicle Commission GAP Disclosure Form" (PDF). Retrieved 2012-03-28.
- ^ "GAP Coverage Disclosure" (PDF).