Help Protect Yourself From the Financial Gap After a Total Loss
If your vehicle is totaled or stolen, your auto insurance settlement may be less than the amount you still owe on your loan. GAP Protection may help reduce or cover the difference, subject to the terms of the waiver.
What Is GAP Protection?
GAP stands for Guaranteed Auto Protection. It is designed to help protect borrowers when a financed vehicle is declared a total loss due to theft or accident.
If your insurance settlement is less than your remaining loan balance, GAP may help cover the difference between the actual cash value of your vehicle and your outstanding loan balance, subject to waiver terms, limits, and exclusions.
Why GAP May Matter
During the first few years of ownership, a vehicle’s value may decline faster than the loan balance. That can create a financial gap between what insurance pays and what you still owe.
Without GAP Protection, you may be responsible for paying the remaining loan balance after your insurance settlement.
Example Scenario
| Scenario | Amount |
|---|---|
| Remaining loan balance | $24,000 |
| Insurance settlement | $20,000 |
| Possible remaining balance | $4,000 |
In this example, GAP Protection may help reduce or cover the remaining balance, subject to the terms of the waiver. This example is for illustration only. Actual benefits depend on the waiver agreement, insurance settlement, loan status, and applicable exclusions.
What GAP May Help Cover
GAP Protection may help cover:
The difference between your vehicle’s actual cash value and your remaining loan balance
A deductible amount, up to the applicable limit
Certain eligible amounts described in the waiver agreement
Contact GTFCU for current availability, cost, limits, and full terms.
What May Not Be Covered
GAP benefits may be reduced by certain amounts, including:
Delinquent payments
Late charges
Refundable service warranty contracts
Other insurance-related charges
Items excluded under the waiver agreement
Please review the GAP waiver agreement for complete terms, conditions, exclusions, and limitations.
Important Information
GAP Protection is a loan deficiency waiver and is not insurance coverage. Purchase of GAP Protection is voluntary and is not required as a condition of credit approval.
Eligibility, limits, exclusions, cancellation rights, and benefit amounts are determined by the GAP waiver agreement.
Ask About GAP When You Finance Your Vehicle
If you are financing a new or used vehicle with GTFCU, ask our loan team whether GAP Protection may be right for you.