GAP Waiver

GAP Waiver & Total Loss Protection at Eide Ford in Bismarck, ND

Protect Yourself from Unexpected Vehicle Loan Debt

When you finance or lease a vehicle, your loan balance can often be higher than your vehicle's actual cash value during the first several years of ownership. If your vehicle is stolen or declared a total loss after an accident, your auto insurance company may only pay the current market value of the vehicle.

The difference between what your insurance company pays and what you still owe on your loan or lease is commonly known as the "gap."

A GAP Waiver from Eide Ford helps protect you from having to make payments on a vehicle you no longer own after a covered total loss.

Whether you're purchasing a new Ford truck, SUV, crossover, or a quality pre-owned vehicle, GAP protection can provide valuable financial peace of mind.

What Is GAP Protection?

GAP stands for Guaranteed Asset Protection.

If your vehicle is declared a total loss due to an accident, theft, fire, severe weather event, or another covered incident, your primary auto insurance policy will generally pay the vehicle's actual cash value (ACV).

However, vehicles often depreciate faster than loan balances are reduced. This can leave you responsible for paying thousands of dollars out of pocket even after your insurance claim has been settled.

A GAP Waiver helps cover the difference between your insurance settlement and the remaining balance owed on your vehicle financing agreement, subject to contract terms and limitations.

How GAP Coverage Works

Example Scenario

Vehicle Purchase Price: $45,000

Current Loan Balance: $38,000

Insurance Settlement Value: $32,000

Remaining GAP Balance: $6,000

Without GAP protection, you could still owe $6,000 on a vehicle you can no longer drive.

With GAP protection, some or all of that deficiency balance may be waived according to your contract.

Why Drivers in Bismarck Choose GAP Protection

North Dakota drivers face unique risks throughout the year, including:

  • Winter driving accidents

  • Hail damage

  • Deer collisions

  • Flooding and severe weather

  • Vehicle theft

If a vehicle is declared a total loss, GAP protection may help reduce the financial burden associated with replacing your vehicle while still paying off your existing loan.

Who Should Consider a GAP Waiver?

GAP protection may be beneficial if you:

  • Finance a vehicle for 60 months or longer

  • Purchase a vehicle with little or no down payment

  • Roll negative equity from a previous vehicle into a new loan

  • Lease a vehicle

  • Drive a vehicle that may experience faster depreciation

  • Want additional financial protection beyond standard auto insurance

Our finance team can help determine whether GAP coverage is appropriate for your specific situation.

Available for New and Used Vehicles

The Eide Ford Total Loss Protection Plan is available on:

  • New Ford vehicles

  • Used vehicles

  • Retail installment contracts

  • Lease agreements

Additional benefits may include deductible assistance of up to $1,000 depending on the plan selected and contract terms.

GAP Waiver vs. GAP Insurance

Many customers ask about the difference between GAP insurance and a GAP waiver.

While both are designed to help protect you from owing money after a total loss, a GAP waiver is a contractual debt-cancellation product offered through vehicle financing rather than a traditional insurance policy.

Our finance professionals can explain the differences and help you understand your available options.

Frequently Asked Questions About GAP Protection

Is GAP protection required?

No. GAP protection is optional and is not required to obtain financing or lease a vehicle.

Does GAP cover missed payments?

No. Missed payments, late fees, accrued interest, payment extensions, and other excluded charges are generally not covered.

Can I purchase GAP protection on a used vehicle?

Yes. Eligible used vehicles may qualify for GAP protection.

Does GAP protection apply to leased vehicles?

Yes. GAP protection may be available for both financed and leased vehicles.

How much does GAP coverage cost?

Pricing varies based on the vehicle, financing structure, and coverage selected. Contact our finance department for details.

Can I cancel my GAP waiver?

Most GAP waiver contracts include cancellation provisions. Review your contract for specific details and requirements.

Learn More About GAP Protection at Eide Ford

If you're purchasing or leasing a vehicle from Eide Ford in Bismarck, our finance specialists can explain your GAP protection options and help you determine whether Total Loss Protection is right for your needs.

Contact our finance department today or visit Eide Ford to learn more about protecting your investment.

TOTAL LOSS PROTECTION PLAN

GAP Insurance at Eide Ford

AVAILABLE FOR NEW AND USED VEHICLES

Have questions? Call the Eide Ford Finance Department:

877-794-3730

Plan Specifics

- Your plan may waive up to $1,000 of your insurance deductible.

- Available on both retail sale and leased vehicles.

- Available for new and used vehicles.

How GAP Insurance Works

TOTAL LOSS PROTECTION PLAN 


It’s called the “gap”. It’s the difference between the Amount Owed on your Retail Installment Sales Contract/Lease Agreement and the Actual Cash Value of your vehicle at the time of a Total Loss. If your car is determined to be a Total Loss, this “gap” could translate into thousands of dollars that you would still owe after the settlement from the auto insurance company. The Amount Owed does not include missed payments, payment extensions, deferred payments,accrued interest, late fees, disposition fees, penalty fees, early termination fees or finance charges incurred after the date of loss. Also, if the insurance company valuation used to calculate the Actual Cash Value is less than 90% of the NADA value of your vehicle, the NADA value will be used in determining the “gap” amount waived (which means a smaller amount may be waived). Depending on the plan you purchase, amounts financed inexcess of 120% or 150% of the Manufacturer's Suggested Retail Price (MSRP) of your new car or NADA retail value of your used car will not be waived and you will owe these overfinanced amounts even after a Total Loss. Please read your contract carefully to make sure you understand these limitations. The Plan excludes total loss claims denied by your automobile insurance company. This is an optional waiver product and not a product of insurance. It is cancellable and not required for you to obtain financing for the purchase or lease of a vehicle.

ADDITIONAL INFORMATION

Claims must be submitted within 90 days of auto insurance company settlement or date of loss if no insurance exists. Upon refinancing, the contract will terminate. A refund will be made within 90 days only upon written request by the customer. This information is intended to provide only an outline of the terms and conditions of the Total Loss Protection Plan described in this brochure and should not be relied upon at the time of purchase or lease of your vehicle. For exact terms and conditions, please review the Total Loss Protection contract itself. Ask your salesperson or Finance Manager for the Total Loss Protection/Gap option you prefer.

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