GAP Insurance Coverage
GAP insurance is the difference (the 'gap') between the actual cash value of a vehicle and the balance still owed on the financing (car loan, lease, etc.).
When you purchase Extended Coverage (Broadening Endorsement) as part of your Mexico insurance policy with ABA or El Aguila, the coverage includes 'Modified GAP' coverage.
Unfortunately, many borrowers owe more to the lender at the time of a total loss than the vehicle is worth. In the past some insureds have had to come out of pocket to make up the difference between the Actual Cash Value ACV (which is paid by the insurer) and the balance of the loan.
As long as you properly insure your vehicle with us for the current Actual Cash Value, then if you owe more than the value to your lender at the time of a total loss, our GAP coverage will apply and the insurer will pay up to 15% more than the ACV/Current Market Value of your vehicle to the lender--to make up the 'GAP'.