In the event of theft, or an accident that results in a total loss, most insurance companies only reimburse the owner for the market value of the unit. This, along with the deductible, can create a significant gap between what your insurer will pay you and the balance on your loan or lease.

Does the customer need GAP? Answer the following questions:

• Is the customer financing/leasing the unit?
• Is the customer's down payment less than 30% of the unit purchase price?
• Is the customer's financed term longer than 24 months?

If the customer answered "Yes" to two or more of the questions above, he or she will need GAP in the event that their vehicle is declared a total loss as a result of theft, collision, or natural disaster.