We rely on our vehicles to save time; they provide the convenience and freedom for us to travel anywhere at any time. Unfortunately, accidents happen. Help protect your borrowers from financial loss and get them back on the road, with a vehicle protection policy.
Help your borrowers stay in the driver’s seat with vehicle protection products
Guaranteed asset protection (GAP)
GAP protects against financial loss in the event a borrower’s vehicle is totaled or stolen. Since insurance settlements are based on the car’s actual cash value, they are often less than the loan balance. This creates a deficiency balance, or “gap” that could jeopardize repayment.
If the insurance company declares a covered vehicle a total loss, GAP will waive:
- The difference between the actual cash value of the vehicle and the balance owed on the loan1
- Up to $1,000 of your borrower’s insurance deductible as part of the loan deficiency balance2
Jet skis/personal watercraft
- RVs (motorhomes, travel trailers)
GAP advantage is an optional feature that credits an additional $1,000 to the amount of a new loan if your borrower chooses to finance the purchase of a new vehicle with your financial institution (where the original loan was held).
Depreciation protection waiver
This waiver helps protect the equity in a vehicle. It provides a waiver benefit in the event a vehicle is totaled or stolen and not recovered at any time over the life of the loan. The waiver benefit is equal to the difference between J.D. Power retail value at time of the waiver purchase, less the amount of the loan balance at time of total loss, capped by both a policy limit and the loan balance at the time.
Vehicle service contract
This contract protects consumers for the costs related to the repairs of covered product components not otherwise covered by an underlying warranty.
- See GAP waiver addendum for all terms, limitations and exclusions.
- Waiver available in most states but not all.