GAP

GAP can be considered either a debt waiver or an insurance product, depending on the laws in your state. A GAP product covers the difference, or “GAP,” between a car’s loan or lease balance and the actual cash value paid by its primary insurer in the case of total loss or unrecovered theft. In this lesson, you will learn the impact of negative equity on GAP programs, common limitations of GAP products, properly disclosing GAP limits, and other important issues to consider when selling GAP products.