GAP Coverage
The gap your insurance leaves
If your car is totaled or stolen, your auto insurer pays what the vehicle was worth that day, not what you still owe. Guaranteed Asset Protection covers the difference so you do not make payments on a car you no longer have.
Why a gap exists at all
New vehicles lose roughly 20% of their value in the first year. Loan balances do not fall nearly that fast.
Depreciation outruns the loan
With a small down payment and a long term, most borrowers owe more than the vehicle is worth for the first two to three years.
Insurance pays actual cash value
Your carrier settles on what the vehicle was worth the moment before the loss, minus your deductible. Your loan balance is not part of that calculation.
$399 once, not monthly
A single premium that can be financed with the loan. Dealers commonly charge $800 to $1,000 for the same coverage.
A total loss, with real numbers
A member buys a $36,000 SUV with $2,000 down at 4.09% APR over 72 months. Fourteen months later it is totaled.
Rates current as of July 2026 and subject to change. Membership eligibility required. This is a demonstration website; rates, products, and figures shown are illustrative only.
How a claim actually works
You will deal with your auto insurer first. GAP steps in after they issue a settlement.
File with your insurer
They inspect the vehicle, declare a total loss, and issue a settlement based on actual cash value.
Send us the paperwork
The settlement letter, the police report if there was one, and your loan number. Our team files the GAP claim on your behalf.
The balance clears
GAP pays the remaining balance directly to the loan, typically within 15 to 30 days of a complete claim file.
Common questions
Who actually needs GAP?
Members who put less than 20% down, financed for 60 months or longer, or rolled negative equity from a trade into the new loan. If you owe less than the car is worth, you do not need it.
Does GAP cover my insurance deductible?
Yes, up to $1,000. That reimbursement is part of the claim, not a separate benefit you have to apply for.
Does GAP make my car payment if I lose my job?
No. GAP applies only to a total loss or theft of the vehicle. For income interruption, look at our payment deferral option or call member solutions.
Can I cancel it later?
Yes. Cancel within 60 days for a full refund, or later for a prorated refund based on months remaining. Paying the loan off early triggers a refund automatically.
Is there a limit on what GAP will pay?
The benefit is capped at 150% of the vehicle's actual cash value at the time of loss. Very large amounts of rolled-in negative equity can exceed that cap.
Can I add GAP to a loan I already have?
Yes, within 90 days of closing on a new, used, refinance, or lease buyout loan. The premium can be added to the balance or paid up front.
Worth $399 to find out
Tell us your balance and vehicle value and we will tell you plainly whether GAP is worth buying on your loan.