How does the us gap addendum work?

Answer 1

GAP is sold as an independent contract on lease and auto loans, It protects the owner of the vehicle from any financial loss due to a difference between the payout from the vehicle collision insurance and the net balance still owed on the vehicle, after the primary insurance deductible. Any payment that is due or coming due, close to the date of the accident or total loss, should be considered carefully if the vehicle is likely to be totaled. Contact your bank immediately to make them aware of the theft or collision so they may hold the account and not damage the credit as long as proof of GAP protection is shown. :-D