Guaranteed Auto Protection

A "gap" occurs when the value of a new or used vehicle depreciates at a faster rate than the loan payoff balance (which is pretty much all the time; a new car begins depreciating the moment it is driven off the lot). Therefore, if the car is totaled or stolen, there may be a balance left on the auto loan.


GAP covers the difference between the actual cash value (ACV) of the car and the outstanding loan balance at the time of loss. GAP will cover a maximum loan term of 84 months. Any private passenger auto, light truck (1 ton load capacity or less), new and used vehicles, and refinanced loans are eligible for GAP protection.


  • Owning GAP protects your credit rating by waiving your responsibility for the unpaid loan balance.
  • Peace of mind. You will be free of the financial burden of an unpaid loan balance and will be put back into a new vehicle sooner.
  • GAP eliminates "out-of-pocket" expenses that are frequently needed to take care of the remaining loan balance after the loss settlement. The advantage of the "convenience factor" becomes a reality!
  • Most importantly, GAP is affordable only $285 for a loan term up to 60 months and $315 for a loan term over 60 months! And the financial institution will finance this nominal fee for only a few dollars a month.

Anyone who lives in a city with a high rate of automobile theft needs vehicle protection.

Anyone who drives in today's traffic during rush hour, anyone who drives on today's freeways, on today's state highways and the nation's interstates needs vehicle protection.

Anyone who values his or her investment in a new or pre-owned automobile needs vehicle protection!

Contact a friendly member service representative for more information about Guaranteed Auto Protection.

How Your Benefits Work

From the example below you can see that there is a "gap" of $5,000, i.e., there is an unpaid balance on the original loan. Without GAP, there is a $5,000 deficit for which the borrower will be responsible. However, with Guaranteed Auto Protection, that debt will be forgiven; the remaining balance will be paid, including the deductible.

Loan Balance After One Year: $15,000
Vehicle's Actual Value: $11,000
Insurance Deductible*: $1,000
Insurance Settlement: $10,000
The "GAP" Difference: $5,000
GAP Pays: $5,000
* Deductible coverage available in most states.