Guaranteed Asset Protection (GAP)
Unexpected events can happen at any time. If your vehicle is stolen or damaged beyond repair, your auto insurance settlement may not fully cover what you still owe on your loan.
Guaranteed Asset Protection (GAP) helps protect you from this financial risk by covering the difference between your insurance company’s settlement and your remaining loan balance.
GAP is available for qualified auto loans through Connect Credit Union.
Protects
Your Credit
Rating
Helps Cover
Unpaid Loan
Balances
Provides
Peace Of
Mind
What Is Guaranteed Asset Protection?
Guaranteed Asset Protection, commonly called GAP, helps cover the difference between:
- Your vehicle’s Actual Cash Value (ACV), as determined by your insurance provider
- The remaining balance that you owe on your auto loan
If your vehicle is declared a total loss or is stolen and not recovered, GAP may help prevent you from having to pay thousands of dollars out of pocket.
In many cases, GAP may also help cover your insurance deductible, depending on state regulations and plan terms.
Why GAP Coverage Matters
Vehicles begin losing value as soon as they leave the dealership. In many cases, depreciation happens faster than loan balances are paid down.
Without GAP, you could be responsible for the remaining balance after an insurance settlement.
GAP coverage helps protect you from:
- Large out-of-pocket expenses
- Unexpected loan balances after a loss
- Potential damage to your credit
- Delays in purchasing a replacement vehicle
Benefits of GAP Protection
Choosing GAP through Connect Credit Union offers valuable financial protection:
- Helps cover unpaid loan balances after a total loss
- May include deductible coverage in most states
- Protects your credit rating from unpaid balances
- Helps you move forward sooner after a loss
- Affordable cost that can be included in your loan payment
All coverage is subject to terms, conditions, and eligibility requirements.
Who Should Consider GAP Coverage
GAP may be especially helpful if you:
- Finance a new or late-model vehicle
- Make a low down payment
- Choose a longer loan term
- Drive in high-traffic or high-theft areas
- Want added financial protection
If you value protecting your investment and minimizing financial risk, GAP may be a smart addition to your auto loan.
Affordable Protection That Fits Your Budget
GAP coverage is typically available at a low cost and can often be financed as part of your auto loan. This means you may be able to add protection for only a few dollars per month.
Ask a loan officer for current pricing and eligibility details.
Frequently Asked Questions
No. GAP works alongside your primary auto insurance policy. You must maintain full coverage insurance while your loan is active.
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