FAR GAP Flashcards
Is GAP waiver a substitute for insurance?
GAP waiver is not insurance coverage and is not a substitute for collision or property damage insurance. It does not provide general liability coverage and does not fulfill the requirements of state laws requiring motorists to maintain insurance coverage.
I already have insurance.
Even with insurance, your insurance company typically will only pay up to the value of your vehicle in the event of a total loss. This means if you owe more on your auto loan than what the vehicle is worth at the time of total loss, you will be responsible for the remaining balance. GAP waiver would cover this remaining balance, up to 150% of the vehicle’s retail value, giving you peace of mind knowing you are protected against a total loss caused by collision, acts of nature, or unrecovered theft.
I already have GAP coverage on my current auto loan.
Please check the terms of your existing GAP waiver to see if it is transferable. Typically, GAP waiver is nontransferable and will not apply to a new loan. Once your current auto loan is paid off, you should contact your current lienholder to determine how to cancel your GAP coverage and if you are eligible for a pro-rated refund. Our GAP waiver will cover your new Flagship account.
I don’t need GAP coverage.
GAP waiver is optional and not a requirement for refinancing. However, I recommend the purchase of GAP waiver since there are events that may happen which are beyond your control, such as a hurricane or theft of your vehicle. If your vehicle were declared a total loss as a result of a covered event, GAP waiver would cover your remaining balance, up to 150% of the vehicle’s retail value, as well up to $1,000 of your deductible.
GAP coverage is too expensive.
Response if monthly payment including the cost of GAP waiver is lower than the consumer’s current monthly payment: All of the benefits of our GAP waiver are included in the new monthly payment you were quoted of $XXX which is still $XX lower than your current monthly payment of $XXX.
Why was I declined GAP coverage? I had GAP on my previous auto:
That’s a great question. By adding the GAP waiver to your loan, it placed you outside of the approval guidelines. However, you have the option to pay all or a portion of the $795 (note: or state maximum – see GAP Guide) upfront if you are still interested in adding this product.
What do you mean “up to 150% of my vehicle’s value”?
As an example, if the resale value of your vehicle is $10,000, GAP will cover up to $15,000.
Do I have the ability to cancel GAP waiver at any time?
Yes, you can do so by contacting our Customer Service Department at any time. During the first 60 days from the GAP Effective Date, you’ll receive a full refund. After 60 days, the refund will be prorated. Refunds will be credited to your account balance unless your loan is paid in full.
* If Yes, see Yes path
* If No, cease offering and move forward with traditional refinance process.
Ineligible state: Do you offer a GAP product?
That’s a great question. We currently offer GAP waiver in select states , Unfortunately, <State (e.g., WY)> is not one of those states. However, you may be able to purchase a GAP product from a third party provider as long as your loan has not been paid in full.
