Car insurance will cover the cost of damages and a stolen car but your auto loan could be higher than the cash value of your car. Guaranteed Asset Protection (GAP) can help you cover the difference between what the insurance company pays out and what you still owe on the loan.
WHAT IS GUARANTEED ASSET PROTECTION?
GAP is a voluntary, non-insurance product designed to waive the remaining loan balance not covered by the borrower’s primary insurance carrier settlement in the event of a total loss or unrecovered theft, subject to limitations and exclusions, including but not limited to loan-to-value (LTV) maximum, delinquent payments, late charges, refundable service warranty contracts and other insurance-related charges.
GAP Advantage also provides you with a $1,000 credit towards the financing of a replacement vehicle financed or leased with our financial institution!
HOW DOES GAP WORK?
The actual cash value of your vehicle as determined by your primary insurance carrier could be less than the actual balance you owe on your loan. In the event of a total loss or theft, GAP waives the difference between your outstanding loan balance and the actual cash value (ACV) of the vehicle up to the maximum LTV %. GAP may also cover up to $1,000 of your deductible if there is a “gap” after the primary insurance settlement is paid. The deductible is covered as part of the deficiency balance settlement. Not available in NY or AK.
BENEFITS OF GAP
- Available for new and used vehicles
- Deductible is included in the deficiency balance, up to $1,000.
- Auto Deductible Reimbursement (ADR) is complementary with GAP (if applicable)
Your one-year-old financed vehicle is totaled beyond repair…
Your loan balance is $15,000
Your insurance company settlement is $10,000
Based on your vehicle’s market value $11,000
Less your insurance deductible $1,000
Total amount you owe without GAP Advantage $5,000
Total amount you owe with GAP Advantage $0
PLUS $1,000 credit towards the financing of your replacement vehicle!
Your purchase of GAP is optional. Whether or not you purchase this product will not affect your application for credit or the terms of any existing credit agreement you have with us. We will give you additional information before you are required to pay for GAP. This information will include a copy of the GAP Waiver Addendum which will contain the terms and conditions of GAP benefit.
GAP eligibility requirements, conditions, and exclusions:
There are eligibility requirements, conditions and exclusions that could prevent you from receiving GAP benefits. You should carefully read your GAP Waiver Addendum Form for a full explanation of the benefits, rules, terms and conditions of the program. This webpage is not a contract. GAP is a loan/lease deficiency waiver and is not offered as insurance coverage. GAP is subject to limitations and exclusions, including but not limited to a loan-to-value (LTV) maximum.