Guaranteed Asset Protection (GAP)

Vehicles are expensive, but they depreciate in value. So it's not uncommon for an outstanding loan balance to be significantly higher than a vehicle's actual cash value, especially during the first few years of the loan. If your vehicle is totaled in an accident or stolen, your primary insurance settlement will be based on its actual cash value, not the outstanding loan balance. This may create a deficiency balance, or "gap," that you would have to pay out of your own pocket.

GAP cancels the difference between the market value of your vehicle (your insurance settlement) and the loan balance (less exclusions and subject to GAP maximums).

GAP cost per vehicle type

Vehicle type Cost
Motorcycles $295
ATVs $295
Snowmachines $295
Jet-Skis/PWC $295
Auto $295
Boats/Vessel $295
RVs (Motor homes, travel trailers, and pickup/campers)
  $25,000 or less $395
  More than $25,000 $495