Guaranteed Auto Protection (GAP)

It happens all the time:  The minute you drive away in your new or used vehicle, it depreciates and is worth less than the amount you owe on it.  This is especially true for new cars.  If your vehicle is stolen or totaled, its cash value can be thousands less than the amount you owe on the loan.  You’ll pay out of pocket for the difference.  For only a few dollars a month GAP can save you from this unexpected expense.

GAP is a non-insurance waiver that covers the “gap” between the vehicle’s value and the amount owed on the loan, not including payments, late charges and other insurance-related charges.  GAP even covers up to $1,000 of your deductible.  The following is an example of how GAP can save you money.

GAP Coverage Example
Item Description Item Amount
Original loan amount $25,000
Loan Balance one year later $20,000
Vehicle’s current value $16,000
GAP benefit $ 4,000


Coverage is available for both new and used vehicles, including all car makes and models, vans, light trucks, motorcycles, snowmobiles, jet skis, ATVs, and golf carts.  GAP can be purchased when you receive your vehicle loan or at any time during the life of your Gulf States Credit Union loan.


Consider GAP if you financed more than 75% of your vehicle cost, or if a significant, unexpected expense would be difficult for you to pay.  If you need help deciding, ask your loan specialist to examine your situation and determine whether this protection makes sense for you.