New Legislation Increases Protection Offerings for Missourians

GAP waivers help folks across the country stay protected in the event of a total loss to their financed vehicle. Legislators are making progress toward increasing the protections made available to citizens to help them find an option that works best for them. 

Earlier this year, Missouri lawmakers furthered the protections for consumer finances by signing a new law that affords additional options for people looking to keep their budgets safe. Missouri is now one of eight trailblazing states taking action as early adopters of these new options for vehicle owners, adding them to existing statutes. State legislators gave Missourians more power over the policies that could keep them in a better financial position if an adverse event were to occur.  

Prior to this new law, consumers could only get access to a traditional GAP waiver that helps cover all or part of the remaining loan balance of a financed vehicle left over from the primary auto insurance payment when a new vehicle is totaled or stolen. With this new legislation, consumers have more options to protect their finances that fit a variety of situations. 

These new, high-value offerings include protections for excess wear and use on leased vehicles, as well as a portfolio of protections that help offset the loss in vehicle value through depreciation or damage that was repaired. For leases, the new coverage helps consumers cover the expense of exceeding the annual mileage restrictions and charges for excess wear and tear. 

Importantly, robust consumer protections were codified into Missouri law, such as consumer product disclosures and requirements that assure providers are able to fulfill their promise to cover future benefits. The new law officially expands the financial protection suite available to consumers, joining other high-value products like auto service contracts and other motor vehicle protection products.

Taken together with GAP waivers, these new optional offerings in Missouri help consumers get into their next vehicle in a better financial position than they would have otherwise. As modern technology makes vehicles more expensive, it’s never been more important for consumers to stay prepared in case a financial burden might come their way. By passing this new law, Missouri legislators agreed that consumers having improved financial health is a true win-win-win for consumers, auto dealers and lenders.

Consumers need more protection offerings to find a plan that works best for their situation. The Guaranteed Asset Protection Alliance is working to expand these offerings to other states throughout the U.S. Keep an eye on our news page to hear about helpful new laws in this area.