It depends on your GAP insurance policy rules. GAP insurance pays the difference between what is owed and what the Physical Damage Insurance Company pays. Some policies pay the deductible and some don't.
These are the standard limitations of a GAP policy:
- Maximum Limit of Loss: $50,000
- A GAP claim settlement may not cover the entire gap due, when your loan's Original Amount Financed exceeds 120% of MSRP (new vehicle) or NADA Retail Value (used vehicles), plus 30% of Value allowable for Additional Financed Items like Credit Life or Service Contracts.
- The claim settlement does not cover late charges or other penalties due to your lender.
- Your loan amount financed must be less than or equal to $100,000.
- Your loan term must not be greater than 84 months.
- The loan must not have a balloon payment due at the end of the term.
- The maximum APR is 12.5%
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