Guaranteed Asset Protection (GAP)

a person sitting in a car

Your Auto Insurance Does Not Cover Everything

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 150% loan-to-value (LTV) maximum, delinquent payments, late charges, refundable service warranty contracts and other insurance-related charges.

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 150% LTV. GAP may also cover up to $1,000 of your deductible if there is a "gap" after the primary insurance settlement is paid*.

Protection Through GAP

What is Guaranteed Asset Protection (GAP)?

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 150% loan to value (LTV) maximum, delinquent payments, late charges, refundable service warranty contracts and other insurance-related charges.

What does GAP cover?

GAP covers the difference between the borrower's outstanding loan balance and the actual cash value (ACV) of the vehicle up to the maximum 150% LTV.

GAP may also cover up to $1,000.00 of the borrower's deductible if there is a "gap" after the primary insurance settlement is paid.*

What Do I need to File a Gap claim?

To file a claim, you will need the following items:

  • Finance Contract - Copy of original
  • Signed GAP waiver addendum - all pages
  • Payment history record - complete record
  • Dealer bill of sale - if vehicle purchased from dealer
  • Auto physical damage worksheet and check
  • Original appraisal and color photos from primary insurance claims adjuster
  • Police report OR cause of loss letter
  • Mechanical Breakdown Protection (MBP) or service contract refund, if applicable

Still have questions? Read our GAP Frequently Asked Questions.

*The deductible is covered as part of the deficiency balance settlement. It is not paid directly to the borrower. Not available in NY or AK.