GAP Insurance

When a leased vehicle or asset is written-off through accident, fire or theft your customer may be left with a major expense in paying off the shortfall between financial obligation and fair market value. Chasing the customer for the remaining fees can create additional administrative and financial burden for you as the lessor - impacting cash flow, taking on bad debt and potentially damaging the relationship with the lessee in the process.

The GAP insurance programme enables you to protect your customers and reduces the risk to your company. It enhances your product offering and provides a substantial increase in fee income for you, and, if applicable, your dealers. We support you through monthly reporting on portfolio activity and an accurate, rapid claims service.

GAP insurance can be sold to borrowers or lessees at the time of loan or lease origination, or can be provided on a blanket basis within your company’s loan or leasing contract.

A choice of GAP insurance alternatives to meet your needs

Alternative GAP insurance options are available to meet the difference between fair market value at the time of the total loss and:

• Outstanding finance balance (Finance GAP), or
• Original invoice value of the vehicle or asset (Return-to-invoice GAP), or
• Full replacement value of the vehicle or asset (Replacement GAP).
• GAP insurance can meet your company's need whether you’re concerned with risk management, product enhancement or increasing fee income.