What is Guaranteed Auto GAP Protection?
Guaranteed Auto Protection is a Loan Balance Deficiency  Waiver designed to eliminate your unpaid net loan balance in the event your vehicle is stolen or damaged beyond repair (totaled). The GAP waiver relieves you of the responsibility for the remainder of the loan balance that the proceeds from your primary insurance policy or any applicable third party insurance policy does not cover (subject to policy limitations).

What Does GAP Waiver Cover?
The GAP Waiver covers the difference between the actual cash value of the vehicle (primary insurance company settlement), including up to $1,000 of your deductible*, and the outstanding loan balance at the time of a loss, less certain deductions. It does NOT cover the following: (1) any refundable additions to the loan amount such as service warranty contracts and credit insurance, (2) more than 2 delinquent payments, (3) late charges, fees or other money added after loan inception, (4) any portion of the loan that exceeds 150% of MSRP (new vehicles) or 150% of NADA average retail book value (used vehicles).

Example:
Based on a sale price of $18,000, after one year the value of your vehicle would be $10,000, the amount you still owed would be $15,000. That leaves a gap of $5,000 that you are responsible for, if your vehicle is damaged beyond repair (totaled) or stolen.

How long after a loan is taken out can a customer purchase GAP?
A GAP waiver can be purchased up to 18 months after the date of the loan. However, the effective date of the waiver will not be retroactive. It will be the date it is actually purchased and cover the remaining loan balance and term on that specific date.

Can GAP be offered on older vehicles?
It depends. If NADA, Kelly Blue Book, or Black Book can establish a value, then GAP can be added to the loan subject to the 150% policy limitation. If the vehicle is not in either of these publications, then GAP cannot be added to the loan.

Can GAP be sold on Motorcycles?
YES. If you can find the motorcycle in an approved source, such as, NADA, Kelly Blue Book, or Black Book.

What happens when an existing loan with GAP has additional funds added to it or the term is extended?
The waiver remains in force. However, in the event of a claim, the loan would be reamortized as if no additional funds or extensions occurred.

Are open-end loans eligible for GAP
YES. Similar to the question above, in the event of a claim, the loan would be reamortized based upon the original term and amount financed, as if no additional funds or extensions occurred.

Should the GAP Waiver Fee be disclosed on our loan agreement?
YES. The GAP Waiver fee should be disclosed in the “Amount Paid to Others” section of the loan agreement.

Can the GAP Waiver be cancelled?
It depends. There is a 60-day free look period in which the waiver can be cancelled with a full refund, for any reason, within 60 days of the origination date of the loan. If the lender selects a non-refundable program, then there are no refunds after the 60-day period. If the lender has a refundable program, then the refund will be calculated using the method approved for that state.

How much does GAP cost?
Talk with your Financial Services Representative about the fees, terms and conditions of GAP. You have the option of paying any fee upfront or financing it into your loan.