asset-protection-small Guaranteed Asset Protection

Many vehicle owners don’t realize that their vehicle starts to depreciate in value the moment they drive off the lot. In the event of a total loss or unrecoverable theft of your vehicle, you may owe more than what your insurance company will pay.

Would you want to pay for a vehicle that you no longer have?


When thinking about buying, consider these facts.

Fact #1

In 2010, a motor vehicle theft occurred every 42.8 seconds in the United States.1

Fact #2

In the event of total loss, the difference between what you owe on your vehicle loan and the amount you receive from your primary insurance carrier is greater in the early years of vehicle ownership.


Cost above are for illustrative purposes only.

Actual costs may vary as to make, model and year.

What Guaranteed Asset Protection (GAP) Pays

In the unfortunate event your vehicle is declared a total loss due to an unrecoverable theft or accidental damage, your auto insurance company will typically pay the current market value of your vehicle less your deductible. But what if your loan or lease balance is higher than the market value of your vehicle? Answer: You would be responsible for paying off the difference, including your deductible. This can be expensive.

The reason for the potential difference is that normally the loan/lease balance decreases at a predictable amount as monthly payments are made. However, the market value of your vehicle is influenced by several variable factors (e.g. supply, demand, mileage). This means that market value often may be lower than your outstanding balance – particularly early in your contract when you have the most to lose.

GAP can help waive the difference, including up to $1,000 of your insurance deductible.2

The Choice is Yours

broken-car.jpg GAP is an optional form of protection available only at the time you sign your Retail Finance or Lease Contract with the dealership. If you would like to know more about GAP, ask to see the GAP contract. Besides the limitations listed at the right, terms and conditions may vary by state.

Payment of Deductible2

GAP only provides a benefit if there is a balance due on the loan or lease after the insurance settlement. If there is no balance due, we will not pay your deductible.


GAP coverage is terminated if the Retail Finance or Lease Contract is refinanced.

Settlement Deductions

GAP waiver amount does not include insurance settlement deductions for customer retained salvage, unrepaired physical damage, towing, rental or storage.

Non-Covered Finance Items

GAP waiver amount does not include late payments, deferred payments, late charges/interest or interest after the date of loss.

Lost Equity

GAP does not refund advance payments or vehicle equity.

Uncancelled Add-Ons

GAP waiver amount does not include the refundable portion of any finance additions such as credit insurance or service contracts.

Customer Secured Financing

GAP does not apply to any loan obtained from any finance source other than the dealer.


GAP does not provide any insurance coverage for you or the vehicle, such as collision, comprehensive, bodily injury, property damage or liability. You must have or obtain physical damage insurance on your vehicle at the time of purchase in order for GAP to be effective. GAP is not a replacement for primary auto insurance.


Is the amount you receive from your insurance company enough to pay off your loan or lease balance if your vehicle is declared a total loss?

For Example

Insurance Settlement
Market Value of Vehicle $13,000
Less Your Insurance Deductible -$1,000
Proceeds from Insurance Company $12,000
Amount You Owe on Loan or Lease $18,500
Proceeds from Insurance Company -$12,000
The Difference $6,500

In this example, the answer is No! The difference illustrates what you would still owe your lender without GAP.

The above is an example for illustrative purposes. Your situation will vary as to loan/lease balance and insurance proceed coverage.

Data from FBI 2010 Uniform Crime Report
Deductible may not be covered in some states. See the GAP contract for specific details.
Based on your insurance company paying NADA Retail Value for the vehicle at the time of loss. You will be responsible for any portion of a deficiency balance that results from the amount financed that exceeded 150% of the retail value of the vehicle as of the date you purchased your vehicle.
Available only at time of purchase.