GAP Waivers

GAP Waiver Addendums

Protect your customer from monetary loss in the event of a totaled vehicle or unrecovered theft.
GAP Waivers are a very affordable protection for the customer, and can be added at the time of origination on the installment agreement.
GAP Waivers protect the customer and the lender against rapid deprecation of a vehicle when there is a total loss or theft
Insurance companies normally pay actual cash value on total losses and unrecovered thefts, leaving your customer still owing money due to depreciation.
More fender benders are becoming total losses, since the cost to repair new technology is increasing. Example a $50 headlight assembly 5 years ago, may now be a $1,000 LED headlight assembly.
GAP Waivers provide protection for the lender even if the customer’s insurance lapses.
GAP coverages can reduce the amount you write of in total loss and unrecovered thefts.
GAP waivers are offered by dealer/lenders to customers whose installment contracts they hold. GAP waivers cannot be offered to loans from outside lenders, since the GAP agreement waives the customer’s debt held by the dealer/lender who offers the GAP waiver.
GAP waivers are tailored to state law. Many states require GAP waivers to be backed by a contractual liability insurance policies by a registered insurer. AVP as the administrator will provide you with the correct GAP waiver documentation and contractual liability insurance policies as required.
AVP can customize GAP waivers to fit your business model.
AVP provides claims, administration, GAP Waiver documentation, obtains the CLIPs for easy implementation of a GAP program for dealers and lenders.
AVP GAP waivers are reinsured, providing you the underwriting profits.