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Guaranteed asset protection
Protect your vehicle loan
Don’t let an accident wreck your finances. Protect the “gap” between the value of your vehicle and your outstanding loan.
If your vehicle is totaled in an accident or stolen and not recovered, your insurance settlement will likely be based on its market value, not your outstanding loan balance.
If you owe more on your loan than your insurance covers, then you have to pay that remaining balance (“gap”) out of your own pocket. When you purchase GAP1, you’re protected for that difference.
Eligible borrowers may be able to add the cost of GAP to the loan during closing. If you’ve recently closed your loan, you may still have the opportunity to purchase GAP.
Is GAP right for you?
GAP may be a good option for you if:
- Your vehicle loan had a low or no down payment.
- Your vehicle depreciates quickly.
- You drive more than 15,000 miles a year, which accelerates your vehicle’s depreciation.
- Your vehicle loan won’t be paid off for five years or longer.
If you're not sure if Guaranteed Asset Protection is right for you, give us a call and we'll walk you through it.
We offer Guaranteed Asset Protection for the following types of vehicles:
- New and used cars and pickup trucks with less than a one-ton capacity
- Motorcycles, ATVs, personal watercraft, snowmachines, and golf carts
- Motor homes, travel trailers, pickup/campers, and boats
If you’ve recently closed your loan, you may still be able to purchase Guaranteed Asset Protection. Give us a call at 800-525-9094 to talk about your options.
No, your vehicle insurance policy only insures your vehicle for its actual cash value, not the full amount of the loan.
The value of your vehicle depreciates after you purchase it, which means that you may owe more on your loan than your vehicle is worth.
If your vehicle is a total loss, and you owe more than the actual cash value of the vehicle, then you will be responsible for paying off the balance of the loan.
To find out if you owe more than your vehicle is worth, you can calculate your Combined Loan to Value (CLTV). If the CLTV of your vehicle is more than 100%, that means you owe more than the actual cash value of your vehicle.
To calculate your CLTV, just look up your vehicle in the Quick NADA Pricing Guide to find its estimated collateral value, then divide the remaining loan amount by the collateral value. The answer will be in decimal form. If your CLTV is above 1.0, then you owe more on your loan than the actual cash value of your vehicle. If your CLTV is above 0.70, GAP might be a good option for you.
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1You may be eligible to purchase GAP on motorcycles, all-terrain vehicles (ATV’s), snowmobiles, golf carts, or jet skis not exceeding $50,000 Manufacturer’s Suggested Retail Price (MSRP) (new) or Retail Value (used), and watercraft, travel trailers and motorhomes not exceeding $125,000 MSRP (new) or Retail Value (used). GAP will not cancel more than $50,000 in total. For autos, vans, pickups, and light trucks, GAP will not cancel more than 150% of the MSRP (new) or 150% of the Retail Value (used). For all other vehicles (motorcycles, all-terrain vehicles (ATV’s), snowmobiles, golf carts, jet skis, travel trailers, motorhomes, and watercraft), cancellation amount will not exceed 125% of the MSRP (new) or 125% of the Retail Value (used). Purchase of GAP is optional.