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If you add gap insurance to your auto policy, you can cancel it after your loan amount drops below the car's value. This often happens after about two years of payments. 5 You can also drop gap coverage if you pay off your loan early, or trade or sell the vehicle.
What is a GAP Waiver? Guaranteed Asset Protection, or GAP Waiver is optional coverage on your auto insurance that pays the difference between what you owe on your car and what it's worth at the time of an accident. You may be asking yourself why you need additional car insurance coverage.
GAP ADDENDUM # SAMPLE. SAMPLE. This guaranteed automobile protection (\u201cGAP\u201d) contract (\u201cGAP Addendum\u201d) amends the Financing Contract. This GAP Addendum is between the Customer/Borrower and the dealer/lender/lessor (\u201cWe\u201d, \u201cUs\u201d, or \u201cOur\u201d) (or if assigned, with the assignee).
\u201cAn addendum means an addition to something. Most lenders identify gap addendums as contracts for gap insurance. When added to a finance agreement, it amends the agreement to include gap insurance. You now have gap insurance on your vehicle.
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