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Guaranteed Asset Protection (GAP)

Insurance

Guaranteed Asset Protection (GAP) is an optional auto-loan product that covers the deficiency between a borrower's outstanding loan balance and the vehicle's actual cash value when the vehicle is totaled or stolen. It protects borrowers from paying out of pocket, reduces lender charge-offs, and generates non-interest income for financial institutions.

GAP is most valuable when a vehicle depreciates faster than the loan balance shrinks. This coverage prevents borrowers from owing money on a car they can no longer drive.

Why it matters for financial institutions

By offering GAP to your members, you protect them from costly deficiency balances while generating non-interest income for your institution. It also helps reduce delinquencies and charge-offs when borrowers are freed from debt on a vehicle they no longer have.