Free Gap Waiver Agreement Template
Gap Waiver Agreement
This Gap Waiver Agreement ("Agreement") is made and entered into on this 6th day of January 2050, by and between:
Lender/Lease Provider:
Name: [Your Company Name]
Address: [Your Company Address]
Phone: [Your Company Number]
Email: [Your Company Email]
Borrower/Lessee:
Name: John A. Doe
Address: 5678 Elm Street, Springfield, IL 62702
Phone: (555) 987-6543
Email: john.doe@email.com
Vehicle Information:
Make: Toyota
Model: Camry
Year: 2050
VIN (Vehicle Identification Number): 1HGBH41JXMN109876
Loan/Lease Details:
Loan/Lease Amount: $30,000
Monthly Payment: $450
Loan/Lease Term: 60 months
Agreement Date: January 6, 2050
Definitions:
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Gap Amount: The difference between the amount owed on the vehicle under the loan or lease agreement and the actual cash value (ACV) of the vehicle at the time of total loss.
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Total Loss: A situation where the vehicle is either damaged beyond repair or is stolen and not recovered.
1. Gap Waiver Coverage:
If the vehicle described above is deemed a Total Loss by the insurance company, this Agreement will waive the Gap Amount. The Lender/Lease Provider agrees to discharge the Borrower/Lessee from responsibility for any remaining loan or lease balance that exceeds the vehicle's ACV, as determined by the insurance payout.
2. Exclusions:
This Gap Waiver Agreement does not cover the following situations:
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Loss due to intentional damage or fraudulent activity.
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Loss or damage not covered by the Borrower's/Lessee's insurance policy.
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Any amounts not covered by the insurance company, including but not limited to deductibles, taxes, fees, or any financing charges.
3. Insurance Requirements:
The Borrower/Lessee must maintain comprehensive and collision insurance coverage on the vehicle for the duration of the loan or lease agreement. The insurance policy must include provisions for Total Loss coverage, and the Borrower/Lessee must immediately notify the Lender/Lease Provider in the event of a claim.
4. Termination of Gap Waiver:
This Gap Waiver Agreement will automatically terminate upon any of the following:
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Full payment of the loan or lease balance.
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Transfer or sale of the vehicle.
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Any other event that leads to the termination of the original loan or lease agreement.
5. Acknowledgment of Borrower/Lessee:
By signing below, the Borrower/Lessee acknowledges that they have read and understood the terms of this Gap Waiver Agreement and agree to its provisions.
6. Governing Law:
This Agreement shall be governed by and construed by the laws of the State of Illinois.
7. Entire Agreement:
This document constitutes the entire agreement between the parties. Any changes or modifications must be in writing and signed by both parties.
Lender/Lease Provider:
Name: [Your Name]
Title: Senior Loan Officer
Date: January 6, 2050
Borrower/Lessee:
Name: John A. Doe
Date: January 6, 2050
