A plan that provides you financial protection in case your lease vehicle is stolen or totaled in an accident. If the vehicle is stolen or totaled, the lessor (BMW Financial Services) will cover the difference between the early termination payoff and the amount for which the vehicle is insured. You will still be responsible for any past due amounts you may owe on your lease, a disposition fee, your insurance deductible, and any other policy deductions by your insurance company.
A specialized type of protection that pays the difference between a total loss insurance settlement and the net scheduled payoff. In some cases, the customer may be responsible for the insurance deductible.
Protection provided by MMCA at no additional cost, which reduces liability for the difference between the proceeds received from the insurance company and the early termination liability on a lease [or the contract balance on a Diamond Advantage Plan contract] in the event the vehicle is totaled or stolen. Gap protection is provided on all Diamond Lease Plan and Diamond Advantage Plan contracts.
If your vehicle is stolen or damaged beyond repair during the term of your lease and you had in effect the insurance required under your lease contract, PRIMUS Financial Services may waive the difference – or gap – between your insurance payoff amount and the lease payoff. With our lease Gap Protection, you are only responsible for the insurance deductible, any lease payments which may be due and all other amounts due and owing under the lease. Unlike other lease companies, gap protection is included at no extra charge.
GAP protection helps assure loan or lease payoff in the event that the collateral is totaled or stolen. Typically, when collateral is stolen or considered a total loss, the insurance company will pay only the actual cash value (ACV). This can be a lot lower than the loan or lease balance, particularly during the early years of the loan/lease. As a result, after insurance payment is credited against the balance, there is still a deficiency balance. GAP protection is designed to fill that "gap" by paying the deficiency balance.
Insurance coverage to pay for future lease payments in the event your vehicle is stolen or totaled in an accident.
Insurance that covers the amount owed due to early termination of a loan. This may occur when a car is stolen or seriously damaged in an accident.
Gap protection (or gap insurance/gap coverage) covers your termination liability under the lease (future payments, fees) if the vehicle is totaled or stolen before the end of the lease. Most gap coverage requires that you not be in default under your lease. Many contracts have built-in gap protection (essentially a "gap waiver") which requires you meet a number of criteria before the coverage becomes effective. For example, virtually all gap waivers and policies require you to pay the deductible on your ordinary insurance before the gap coverage becomes effective. Read your contract carefully to make sure you have gap protection.
A unique feature of our Volvo Car Finance lease that waives the difference - or gap - between your insurance payoff amount and the lease payoff in the event your leased vehicle is stolen or destroyed. Gap Protection is included at no extra charge with your contract, provided you have the insurance required under the lease contract. With our lease Gap Protection, you are only responsible for the insurance deductible, any lease payments which may be due and all other amounts due and owing under the lease.
A policy or agreement that provides financial protection to cover the gap between the lease obligation and insurance settlement in the event the vehicle is “totaled†or stolen. Included at no additional cost in a Chrysler Financial Lease (not including deductible, past due amounts, or other lease-end fees).
A type of insurance covering the amount owed due to early termination of a lease agreement that is not covered by auto insurance. Involuntary early termination of a lease may occur when a car is stolen or significantly damaged in an accident. The actual cash value of the car paid by auto insurance may not be adequate to pay the lease payoff balance and early-termination penalties.
