If your vehicle is totaled and you owe more than it’s worth, this coverage helps pay the difference  

Protect your vehicle loan — and your finances

If your vehicle is totaled or stolen, your auto insurance settlement may be less than what you still owe. Guaranteed Asset Protection (GAP) insurance may help reduce or eliminate that shortfall, helping you move forward with greater financial stability. 

Covers the loan “Gap”

If your vehicle is deemed a total loss, GAP may help cover the difference between your insurance settlement and your remaining loan balance.

Support your next vehicle

By reducing or eliminating a loan balance after a total loss, GAP Plus may make it easier to finance a replacement vehicle at the credit union. 

Simple add-on at loan closing

GAP can be added when you finance your vehicle loan, making it easy to include protection from the start.

How to add GAP Plus insurance to your loan

You can choose GAP when financing your vehicle. We’ll explain how it works so you can decide if it fits your needs.

01
Finance your vehicle loan

Apply for and close on your vehicle loan with Allegacy Financial.t

02
Review GAP details

We’ll provide the contract outlining eligibility requirements, terms, conditions, and exclusions for your review to confirm eligibility for GAP Plus coverage. If you decide GAP is right for you, the fee may be included in your loan amount or paid separately.

03
Choose whether to add coverage

We’ll walk through key details like your loan balance, vehicle value, and financing terms to determine how GAP Plus can help protect you if your vehicle is totaled or stolen. If GAP Plus is a good fit, we’ll guide you through the paperwork and next steps so your coverage is in place — giving you added peace of mind on the road ahead.

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Your questions, answered

GAP insurance, or Guaranteed Asset Protection, helps cover the difference between what you owe on your auto loan and your vehicle’s actual cash value if it is totaled or stolen. 

Because vehicles often depreciate faster than loan balances decrease, you could owe more than your insurance company pays after a covered loss. GAP insurance helps reduce or eliminate that remaining balance, depending on the terms of your coverage. 

If your vehicle is declared a total loss, your auto insurance typically pays its current market value. If that amount is less than what you still owe on your loan, GAP insurance may help cover the difference, based on your contract. 

With GAP, you also have an added benefit: if you replace your vehicle within 120 days and finance it with Allegacy Financial, you’ll receive $1,000 after the fact to help with your next vehicle purchase. 

GAP insurance is typically not required by law. However, it may be recommended if you made a small down payment, financed your vehicle for a longer term, or rolled negative equity from a previous loan into your current financing. An expert can help you determine whether GAP coverage makes sense for your situation. 

You may want to consider GAP insurance when purchasing or refinancing a vehicle, especially if your loan balance is likely to exceed the vehicle’s value during the early years of financing. Adding GAP protection early in the loan term may provide added financial protection if an unexpected total loss occurs. 

In some cases, yes. Depending on eligibility and loan details, you may be able to add GAP coverage after your loan is established. An expert can review your current loan and explain available options. 

Auto insurance covers damage to your vehicle and liability related to accidents, subject to your policy limits and deductibles. GAP insurance does not replace auto insurance. Instead, it helps cover the remaining loan balance if your insurance payout is less than what you owe after a total loss. Both types of coverage serve different purposes and may work together to help protect your finances.