Scam alert! Click on the fraud button below to learn more.

GAP Coverage

Guaranteed Asset Protection (GAP) Advantage

ā€œGAPā€ is the deficiency balance between your outstanding loan balance and the actual cash value of the vehicle.

Guaranteed Asset Protection Advantage (also known as ā€œGAPā€) was designed to relieve you of the remaining loan balance that your primary insurance carrier doesnā€™t cover in case your vehicle is stolen or totaled in an accident and canā€™t be repaired. ā€œGAPā€ is not insurance but a one time fee that can be added to your loan that costā€™s less than $9 per month. The value of your vehicle rapidly declines once itā€™s driven off the lot; that should give you peace of mind knowing that your investment is covered in case anything would happen.

Features of GAP include:

  • Coverage for the term of a loan, up to 72 months.
  • Coverage for vehicles valued up to $100,000 at time of purchase.
  • Payment of benefits up to $50,000.
  • Coverage deductibles up to $1,000.
  • Benefits for new or used vehicles, including cars, light trucks, motorcycles and some other motorized vehicles.
  • $1,000 down payment credit toward a replacement vehicle. *
  • Fully refundable in the first 60 days.

The following is a typical example of how GAP Advantage could work for you:

Insurance Settlement

Vehicle (Actual Cash Value)
$16,000
Insurance Deductible
$1,000
Insurance Settlement
$15,000

LoanĀ Settlement

Original Purchase Price
$23,000
Outstanding Loan Balance
$19,000
Insurance Settlement
$15,000
Deficiency Balance
$4,000
GAP Coverage Amount
Including the $1,000 credit toward replacement vehicle
$5,000

* The $1,000 replacement credit is given only if the replacement vehicle is financed through AIM. For complete details contact a loan officer at any of our credit union locations.