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Home | F & I Solutions | Marine | GAP Coverage | FPC Premium Marine Protection® GAP Coverage

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FPC Premium Marine Protection® GAP Coverage

In the event of a total loss due to unrecovered theft, collision, fire or any insured peril, your customer's vehicle asset may be worth less than the amount they owe on their loan at the time of total loss. In many cases this will leave them responsible for paying the difference.

If a covered loss occurs, GAP coverage will, in most cases, pay the difference between the actual cash value and the scheduled balance owed to the lender, net of refunds, plus the insurance deductible.

GAP Coverage Highlights
  • Activated in the event of a total loss
  • Covers the difference, in most cases, between the watercraft's scheduled pay-off amount net of refunds and the watercraft’s actual cash value
  • Covers your primary insurance deductible up to $1,000*
  • Available for most financed new and pre-owned marine assets

*Deductible coverage is not available in all states; in some states deductible coverage is provided as a standard benefit with GAP coverage.

This information highlights key coverage provisions and terms. Coverage not available in all states. See your addendum/policy for exact terms, coverage, limitations and exclusions.

How GAP Coverage Works

Primary Insurance Coverage

Actual Cash Value at time of loss

$17,000

Insurance Deductible

- $1,000

Insurance Check

$16,000
   

GAP Coverage

  

Loan Balance Payoff1

$20,000

Insurance Check

- $16,000

Remaining Loan Balance

$4,000

GAP Coverage Benefit

$4,000

Amount you owe2

$0

1 For purposes of the GAP calculation, this will generally be the lesser of the scheduled loan balance or the actual loan balance, minus refunds, if any, due to be received for the early termination of products such as service contracts.

2 The GAP coverage benefit might not cancel the entire amount your customer owes at the time of loss. If loan-to-value exceeded 120% on the GAP effective date, the GAP coverage benefit will be adjusted by subtracting the amount by which loan-to-value exceeded 120%.

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