Gap Protection
GapPROTECTION
Gap Protection
GapPROTECTION
Are you fully covered?
In the event of a total loss or unrecoverable theft, your insurance company will most likely settle your claim based on the truck's actual cash or stated value, leaving you to deal with the gap, or unpaid balance of your loan.
Benefits
Why purchase truck gap insurance?
For several months after you buy your truck, it will depreciate faster than you pay down your loan, creating a ‘gap’ between the value of the truck and the loan balance. Gap Protection covers the financial gap between your primary insurance company’s settlement on a total loss or unrecovered theft and the remaining balance of your loan.
GAP Protection
GAP Protection covers the gap between the Actual Cash Value of your truck or trailer and the remaining loan balance in the event of a total loss or unrecovered theft
GAP Protection covers
Primary insurance deductible up to $2,500, where allowed by law
Loans may be covered up to:
$85,000 and 60 months
Low monthly cost
Example of Gap Protection
Loan Term 60 months
Loan Amount $40,000
Loss Occurs 12 months
Insurance Settlement
(Actual cash value of vehicle) $29,600
Loan Balance $34,825
What You Still Owe $5,225
Potential Out-of-Pocket Expense $5,225
Gap Protection Payment to Lender $5,225
Your Net Cost $0
Is Gap Insurance Right for You?
As with any insurance plan, gap insurance is a balancing act between risk, reward, and cost. Of course, there is the distinct possibility that you will pay into gap protecting and never use it. But on the other hand, there’s the chance that you could total a relatively new semi-truck or have it stolen and never recovered; depending on your truck’s value and your remaining loan balance, you could end up owing tens of thousands of dollars on a truck that no longer exists. Is this a risk that you can take with your career and your livelihood?
While gap insurance might be considered optional for commuters, it’s much more vital for truckers who rely on their semis for income. No work-from-home option or public transportation is available to help you do your job daily. You need your truck, and if you’re stuck paying out a loan for a truck that’s lost to you, it can feel impossible to afford a new semi to get you back on your feet.
Contact Arrow Truck Sales today to learn more about our gap insurance coverage and how it can benefit you.
Interested in learning more?
The team at Arrow Truck Sales is here to serve you. If you’re interested in purchasing gap insurance, please don’t hesitate to reach out and we’ll be happy to answer any of your questions and get you on the path to true financial security.
Disclaimer
This information is not a contract. For a complete list of benefits and rules please request a copy of the Gap Waiver Election Form (or the Gap Certificate for loans in Texas). Deductible coverage is available in most states. Check with your Arrow representative to learn whether deductible coverage will apply to your loan. Administered by Berkshire Risk Services LLC. Arrow Truck Sales is not responsible for typographical errors.