Guaranteed Asset Protection(GAP)(FAQs)
What is Guaranteed Asset Protection (GAP)?
In the event your vehicle is totaled or stolen, your primary insurance company settlement can be significantly less than the outstanding loan balance. This may create a deficiency balance or a "gap" resulting in a serious financial hardship for you. Not only do you need to finance a replacement vehicle but you would have to pay off the deficiency on your current loan. GAP covers the loan balance that your primary insurance carrier did not cover up to 125% of average MSRP (new) or up to 125% of average retail book value (used).
What is GAP Advantage?
In addition to GAP, GAP Advantage is an additional $1,000 benefit you can receive if you finance your replacement vehicle with Sooper Credit Union within 90 days of the Date of Loss. This benefit is applied towards the amount financed on the replacement vehicle.
What are the benefits of GAP?
•Low-cost protection with a 30-day free look
•Protection is provided for the term of the loan (up to 84 months)
•Covers primary insurance deductible up to $1,000
•No mileage or year restrictions
•Eliminates the out-of-pocket expense for the remaining loan balance after loss settlement in most cases
•Helps you avoid financial hardship and afford a replacement vehicle
•Prevents deficiency balance from being added to new loan in most cases
•Provides additional $1,000 toward financing of a replacement vehicle if financed with Sooper Credit Union
•Helps protect your credit rating
What vehicles are eligible for GAP?
New and used four-wheeled autos, vans, SUV’s and light trucks, not to exceed 1 ton load capacity. Vehicles used for taxi, limousine or "shuttle" services are excluded. New and used motorcycles and other recreational vehicles up to a retail value of $50,000 not used for commercial purposes.
Can I buy GAP on a salvage/reconstructed titled vehicle?
No. Salvage or reconstructed title vehicles are not eligible for GAP.
I have an older car, is there an age limit on my vehicle?
As long as a value for the vehicle can be found in the regular NADA publication, it is eligible for GAP.
I will be using my vehicle for my business. Can I buy GAP?
New and used four-wheeled autos, vans, SUV’s and light trucks, not to exceed 1 ton load capacity, titled under an individual name, not a business name, are eligible for GAP. However, vehicles used for taxi, limousine or “shuttle” services are excluded.
Can I buy this same type of coverage through my dealer?
Yes. But you will find GAP Protection purchased through a dealership is generally much higher priced and the benefits are often less than what is offered through Sooper Credit Union.
Does GAP replace my comprehensive and collision coverage?
No, GAP is not a substitute for collision or property damage insurance.
How do I pay for the GAP coverage?
GAP can be financed with your loan closed at the credit union or you may pay the GAP fee yourself. If you closed your loan at the dealership, GAP can still be added to your loan. Please contact the credit union at 303-427-5005 for more information on how to add GAP to your loan.
Will I receive something in the mail after I purchase GAP explaining the coverage?
Yes, if you are adding GAP to an existing loan we will mail you a form to sign along with the coverage details. For loans closed at the credit union, you will be given the information when signing your loan documents.
Can I purchase GAP after loan origination?
Yes, you can purchase GAP after loan origination. Please contact the credit union at 303-427-5005 for information on how to add GAP to your loan.
How is my deductible covered by GAP?
The primary insurance deductible is covered as part of your unpaid loan balance; it is not “reimbursed”. GAP covers the difference between the actual cash value (ACV) of your vehicle and the outstanding loan balance. Since your insurance company pays ACV less the amount of your deductible, the “gap” is increased by this amount. When your loan balance is paid off by GAP the deductible is paid as part of that balance.
If my primary insurance pays off my loan balance in full does GAP reimburse me for my deductible?
No, see “How is my deductible covered” question above. You did not actually pay for the deductible, so GAP does not pay the deductible back to you.
Can I purchase my salvage (totaled vehicle) back from my insurance company?
If you purchase your salvage vehicle from your insurance company, they will deduct the salvage amount from your settlement. The amount of this deduction will not be covered by GAP.
Does GAP cover towing and storage expenses?
No, it does not cover towing and storage expenses.
If I am past due on my loan, how does this affect the GAP settlement?
GAP will cover past due payments up to 30 days, if you are past due more than that, the past due payments will be deducted from the GAP settlement. This includes skipped payments as part of a lender skip a pay program. GAP does not cover any late charges.
How do I file a claim?
Contact your Sooper Credit Union branch to file a GAP claim. We will need a copy of your primary insurance company’s settlement worksheet and a copy of the police report. The GAP claim payment is paid to Sooper Credit Union and will be directly applied to your loan.
Is there a deadline to file a GAP claim?
GAP claims must be filed within 90 days from the date of your primary carrier’s settlement.
How do I receive payment for the GAP claim?
The GAP claim settlement is paid to Sooper Credit Union and applied to your loan.
I have a service warranty policy on my vehicle – does this affect the GAP claim?
GAP does not cover the refundable portion of any service warranty or full term credit insurance since you can obtain this reimbursement by canceling the policies with the appropriate companies.
What is the maximum amount GAP will pay?
Maximum GAP loss covered is $50,000.
Does GAP pay if I am uninsured?
If there is no primary insurance, GAP pays the difference between the Actual Cash Value of your vehicle, at the time of loss, and the unpaid net balance of you loan. You would remain responsible for paying the Actual Cash Value of the vehicle.
I am refinancing my loan. Can I purchase GAP at that time?
Yes, GAP can be added to the new loan.
I have GAP and am going to refinance my loan - Does the GAP transfer to the new loan?
No, the old policy can be canceled and a new policy can be purchased.
Can GAP be transferred to a different vehicle?
No, it cannot be transferred to a different vehicle.
I am refinancing my loan at another financial institution – can the GAP transfer to my new loan?
No, the GAP is nontransferable.
I am going to have additional funds added to my loan – do I need to purchase a new GAP policy?
Yes. Any additions or modifications to your loan will not be covered unless you purchase a new GAP policy. The GAP you originally purchased is an addendum to the loan on which it was sold so any monies added to the loan would not be covered.
My car has been totaled. Should I continue to make payments on my loan?
Yes, continue to make your loan payments and notify a Sooper Credit Union representative of the total loss as soon as possible.
Can I cancel my GAP?
GAP coverage may be cancelled anytime during the first 30 days for a full refund. After 30 days the coverage can still be canceled, but any refund will be calculated on a pro-rate basis. For cancellation, complete, sign and forward the cancelation form given to you with your loan information to Sooper Credit Union or contact us at 303-427-5005 for assistance.
Revised October 2009