What Is A Gap Waiver Agreement

3. A holder shall not be required, under paragraph two of this Section, to waive his contractual right to hold the purchaser liable for the amount of the difference if, during the current calendar year or the odd calendar year immediately preceding the calendar year in which the contract is concluded, the holder receives notifications of declination of the insurance against the difference between automobile creditors or other evidence of has received a unavailability. is on the list of insurance companies that were entitled to take out insurance against automobile creditors in that State during that calendar year. (Emphasis added.) (A) `motor vehicle deficit insurance of the lessor/creditor` which insures the lessor, creditor or assignment of the lessor or creditor in connection with a rental or loan of motor vehicles or other credit transaction in which the lessor, creditor or, in the absence of a waiver by the lessor or creditor, the assignee has waived the obligation of the lessee or debtor for the amount of the difference; In addition, GAP waiver coverage is limited to the initial term of your loan. For example, if you refinance your auto loan for a period of 36 months and purchase a GAP waiver at that time, that waiver will only remain in effect for that 36-month period. The Insurance Act does not require motor vehicle purchasers to be offered gap insurance or a deviation exemption. However, the New York Personal Property Law ยง 302 (A), which defines a creditor`s obligations to a debtor with respect to the offer of gap waivers/insurance, reads in the corresponding section as follows: GAP coverage is sold in one of two forms: a GAP waiver or GAP insurance. While the two terms are often used interchangeably, there are a few minor differences between each product: GAP waivers are offered and sold by your creditor or finance company when you get a car loan or refinancing, while GAP insurance is a standalone insurance product that can be purchased at any time. GAP insurance and a GAP waiver are not the same thing, but both offer security to buyers who want to be protected from unforeseen events. 2. If the instalment retail contract provides that in the event of a total loss of the vehicle caused by theft or property damage, the buyer is liable for the amount of the difference, the owner proposes before entering into the contract to waive his contractual right to hold the buyer liable for the amount of the difference in the event of total loss of the vehicle caused by its theft or bodily injury. only if insurance against automobile creditors is available to the holder and this coverage is obtained from a property and casualty insurance company..

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