What is GAP Protection?

Guaranteed Asset Protection (GAP) is valuable protection offered to car buyers as part of the auto loan process. GAP waives the difference between the actual cash value (ACV) of an insurance company settlement and the eligible balance of your auto loan in the event your vehicle is stolen or damaged beyond repair.

Here's how the GAP can happen…

In the first two or three years of your loan your new vehicle depreciates in value faster than your loan balance declines.

If the vehicle is totaled in an accident, or is stolen and unrecovered, your insurance company may pay only the actual cash value of the vehicle. The actual cash value may NOT pay off the entire balance of your loan.

What does GAP cover?

  • Non-commercial autos and trucks one ton or less
  • Waives the GAP difference between your eligible loan balance and ACV Auto Insurance settlement when an unrecovered theft or total loss occurs, including your deductible up to $1,000
  • Original loan amount on autos, non-commercial trucks and SUVs up to $100,000 are eligible
  • GAP claim payout to $50,000
  • Up to 125% of MSRP financing on new vehicles
  • Up to 125% of NADA retail, financing on used vehicles including add-ons
  • Auto loan terms up to 84 months

How much does GAP protection cost?

A one-time fee of $300, and we can normally finance it with your car loan. Don't go without the peace of mind this coverage can provide you.

What causes the GAP?

Consider the following example:

Loan Balance


Actual Cash Value


Insurance Deductible


Insurance Settlement

$20,000 (-$1,000 for insurance deductible)

The “GAP”

$6,000 (GAP claim + insurance deductible reimbursement)