Depreciation Protection Waiver for Low-LTV Vehicle Loans
- Credit Unions
- Auto Dealers
- Banks
- Finance Companies
- Mortgage Servicers
- Community
Protect borrower equity and extend total loss protection to loans where traditional GAP may not be the right fit.
Not every borrower who needs total loss protection is a fit for traditional GAP. Allied Solutions’ Depreciation Protection Waiver (DPW) gives financial institutions an alternative for low loan-to-value vehicle loans, helping protect borrowers who have built positive equity through a down payment, trade-in, rebate, or loan paydown.
If a covered vehicle is totaled or stolen and not recovered, DPW provides a waiver benefit based on the vehicle value established at enrollment less the outstanding loan balance at the time of loss, up to a maximum benefit of $10,000 or the outstanding loan balance, whichever is less.
Allied makes DPW easier to position alongside GAP through iQQ. The solution is integrated into the platform, so the appropriate protection option can be presented automatically based on the loan, helping your staff offer broader total loss protection without adding unnecessary complexity to the sales process.
Who Needs Depreciation Protection Waiver?
DPW is designed for financial institutions that want to extend total loss protection to borrowers who have positive equity in their vehicles and may not be a strong fit for traditional GAP.
It may be especially relevant when your institution wants to:
- Protect borrowers with lower loan-to-value vehicle loans.
- Address equity created through down payments, trade-ins, rebates, or loan paydown.
- Offer a complementary protection option alongside GAP.
- Expand point-of-sale protection opportunities across more of the auto loan portfolio.
- Give front-line staff a simpler way to identify and present the appropriate protection product.
Why Allied for Depreciation Protection Waiver?
Extend protection beyond traditional GAP eligibility.
DPW gives your institution another option for borrowers with low-LTV loans, helping you address total loss exposure across a broader range of vehicle financing scenarios rather than leaving positive-equity borrowers without an applicable protection product.
Make product selection easier through iQQ.
DPW is integrated into Allied’s iQQ platform. The system can evaluate the loan and automatically present the appropriate option, helping reduce the burden on front-line staff when deciding whether GAP or DPW is the better fit.
Protect borrower equity over the life of the loan.
DPW is a life-of-loan benefit for eligible loans for up to 84 months. The benefit is applied to the outstanding loan balance and may reduce or completely satisfy that balance following a covered total loss, depending on the circumstances.
Pair DPW with GAP for broader portfolio coverage.
Offering DPW alongside GAP allows your institution to address both lower- and higher-LTV vehicle loans with protection options designed for different borrower equity positions.
Add borrower value with Auto Advantage.
DPW can be paired with Auto Advantage, including Auto Deductible Reimbursement, to enhance the borrower's benefit and support DPW sales without changing the core purpose of the protection product.
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Learn MoreFrequently Asked Questions
Depreciation Protection Waiver is an alternative to GAP for borrowers with low loan-to-value ratios on vehicle loans. It provides a benefit when a covered vehicle is totaled or stolen and not recovered. The benefit is based on the vehicle value established at enrollment minus the outstanding loan balance at the time of loss, up to a maximum benefit of $10,000.
Depreciation Protection Waiver provides a borrower benefit following a covered collision or comprehensive total loss, including theft. The benefit equals the vehicle value established at enrollment less than the outstanding loan balance at the time of loss, up to $10,000. This structure makes DPW an alternative to GAP for qualifying low LTV vehicle loans.
Depreciation Protection Waiver is designed for borrowers with low loan-to-value vehicle loans who have established equity through down payments, rebates, trade-ins, or other factors. Financial institutions can offer DPW as an alternative to GAP when traditional GAP may not be a good fit for a borrower’s loan.
Depreciation Protection Waiver provides a benefit when a covered vehicle experiences a collision or comprehensive total loss, including theft when the vehicle is not recovered. The benefit is calculated using the vehicle value established at enrollment and the outstanding loan balance at the time of loss, with the benefit limited to a maximum of $10,000.
Financial institutions can use Depreciation Protection Waiver as an alternative vehicle protection solution for low LTV loans and as a complement to GAP. The program provides an additional fee income opportunity, while DPW sales can be administered and tracked through iQQ. Financial institutions can also provide the complimentary Auto Advantage benefit to borrowers with DPW.
Depreciation Protection Waiver is an alternative to GAP that targets low LTV vehicle loans, particularly when borrowers have established equity through down payments, rebates, or trade-ins. Rather than addressing a loan balance that exceeds vehicle value, DPW provides a benefit based on the vehicle value established at enrollment minus the outstanding loan balance at the time of loss, up to $10,000.