Guaranteed Asset Protection

Our Guaranteed Asset Protection (GAP) solution helps cover the difference between a vehicle’s actual cash value and the remaining loan balance in the event of theft or total loss.

Guaranteed Asset Protection (GAP)

Guaranteed Asset Protection (GAP), also referred to as GAP Waiver Protection, serves as a debt waiver designed to eliminate the out-of-pocket expense if there is a different between the actual cash value and loan payoff amount when a vehicle is stolen or totaled.

Borrowers have the option to purchase this coverage when they finance their auto loan. In the unfortunate event of theft or total loss, GAP Waiver Protection steps in to bridge the “gap” between the vehicle's value and the outstanding loan balance, particularly when the loan amount surpasses the vehicle's value.

It's particularly useful in situations where the borrower owes more on their auto loan than the vehicle is worth, which can happen due to factors like depreciation. GAP Waiver Protection can provide peace of mind for borrowers, especially in situations where they may have a high loan balance relative to the value of the vehicle.

Features
Benefits
Coverages

Option to include 2 Late Payments and 2 Skip-A-Payments.
$1,000 Benefit towards another vehicle after a total loss, if financed with the same lender.

User-friendly online system to receive NADA values, purchase coverage and run quotes.

Existing debt can be rolled into the loan when getting GAP Waiver Protection.

Helps reduce the risk of negative equity for the borrower.
The program provides a positive, quick, and fair claims experience.

Reduces charge-offs and GAP exposure allowing more loans to be made.

Ensures quick payment for GAP claims within 7-10 days.

Prevents negative interaction with borrowers due to deficiency loan balances.

Promotes customer retention by providing $1,000 toward a replacement vehicle.

Generates fee revenue by allowing markup from the lender.

Pays the difference between the ACV and loan payoff if the vehicle is stolen or totaled.
$1,000 Benefit towards a replacement vehicle if financed through the same lender.

Guaranteed Asset Protection (GAP) Waiver Protection is a type of insurance coverage that protects borrowers and lenders from financial loss in the event of a total loss or theft of a financed vehicle. It covers the "gap" between the vehicle's actual cash value and the remaining loan balance.

Lenders offer Guaranteed Asset Protection to provide borrowers with added financial security and peace of mind. It helps protect borrowers from owing money on a vehicle that is deemed a total loss, and it reduces the lender's risk exposure in such situations.

Guaranteed Asset Protection benefits lenders by reducing the risk of borrowers defaulting on their loans due to negative equity in a total loss situation. It helps ensure that lenders receive the full loan balance owed, even if the vehicle's value depreciates faster than the loan is paid down.

Guaranteed Asset Protection is typically applied at the time of loan origination or financing. Borrowers have the option to purchase GAP coverage to supplement their auto insurance and protect themselves and the lender from potential financial loss.

Guaranteed Asset Protection covers the difference between the actual cash value of the vehicle (as determined by the insurer) and the outstanding loan balance at the time of a total loss or theft. It may also cover certain additional expenses, such as deductible amounts and unpaid charges.

The cost of Guaranteed Asset Protection is typically based on factors such as the loan amount, term, vehicle type, and the borrower's creditworthiness. Lenders may offer varying pricing structures and options for borrowers to choose from.

Borrowers generally have the option to cancel or opt out of Guaranteed Asset Protection within a specified period after loan origination. However, once the cancellation period expires, the coverage is typically non-cancelable for the remainder of the loan term.

In the event of a total loss or theft of a financed vehicle, the borrower or lender files a claim with the Guaranteed Asset Protection provider. The provider assesses the claim and reimburses the lender for the covered "gap" amount, ensuring the loan is paid off in full.

Lenders evaluate Guaranteed Asset Protection providers based on factors such as the provider's reputation, financial stability, claims processing efficiency, coverage options, and pricing competitiveness.

Common challenges include educating borrowers about the benefits of GAP coverage, ensuring compliance with regulatory requirements, and managing communication regarding coverage options and claims processing.

Costs associated with Guaranteed Asset Protection may include the cost of the GAP coverage paid by borrowers, administrative expenses for managing the coverage, and potential costs of claims processing and reimbursements.

Consumer Lending

Vendor's Single Interest

A Blanket VSI policy eliminates the need to track insurance policies, send warning letters and force-place CPI coverage after loan closing.

Collateral Protection Insurance Alternative
Eliminates Insurance Tracking Post-Close
Provides Physical Damage Coverage
Additional Coverages Available
Simple Reporting & Remittance

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Consumer Lending

Auto Insurance Tracking

Outsource all the duties associated with opening insurance renewal mail, tracking insurance policies, sending warning letters and force-placing coverage.

Third-Party Insurance Tracking
Notifications Handled By Third-Party
CPI Coverage Placed When Needed
Transfers Risk of Non-Compliance
Access to Real-Time Online System

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Consumer Lending

Lender-Placed CPI

Gain access to a user-friendly system which generates compliant warning letters and allows lenders to easily add, cancel and edit CPI coverage when necessary.

Add, Edit or Cancel Coverage Online
Automated Warning Letter Cycle
Physical Damage Coverage Included
Additional Coverage Available
Simplified Monthly or Annual Billing

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Guaranteed Asset Protection