Protecting Your Most Valuable Assets
Also known as guaranteed auto protection or guaranteed asset protection, GAP is additional automobile coverage that protects you in the event of your vehicle being totaled or stolen. When your vehicle is declared a total loss, standard insurance coverage may not cover the full amount you owe on your loan or lease — that's where GAP coverage comes in.
How GAP Works
When a vehicle is totaled or stolen, your primary auto insurance will typically pay out the current market value of the vehicle. However, due to depreciation, this amount may be less than what you still owe on your auto loan or lease. GAP coverage bridges this "gap" between the insurance payout and your outstanding financial obligation, protecting you from having to pay out-of-pocket for a vehicle you no longer have.
Who Needs GAP?
GAP coverage is particularly valuable for those who have financed or leased a vehicle with little or no down payment, have extended loan terms (typically 60 months or more), are leasing a vehicle, have rolled negative equity from a previous vehicle into a new loan, or drive a vehicle that depreciates faster than average.
Harringtonrm GAP Program
Harringtonrm administers GAP programs on behalf of dealers, lenders, and insurance carriers across the United States. Our comprehensive GAP administration services include program design, contract administration, claims management, and performance reporting.