Guaranteed Asset Protection (GAP)

Are you financing your car, light truck, or SUV? Did you know that if it's totaled or stolen, YOU COULD FACE A FINANCIAL RISK that your auto insurance policy may not cover? Guaranteed Asset Protection (GAP) coverage protects you against this risk!

In the event of theft or total loss of your vehicle, most insurance companies only pay the Cash Value of the vehicle at the time of the loss. Your remaining loan balance could be much greater than the Cash Value of your vehicle creating a DEFICIENCY OF SEVERAL THOUSAND DOLLARS THAT YOU'RE LIABLE FOR! What is the "GAP" on your vehicle? You may be surprised at the answer!

How GAP Works. A Typical Example.
Vehicle's original purchase price: $25,000
Suppose after one year you experience a total loss on your vehicle...
Loan balance after one year: $20,000
Insurance settlement covering vehicle's current value: $16,000
Your lost investment without GAP...
Your remaining unpaid loan balance; the "GAP" (including your deductible, up to $1,000)* : $4,000
GAP pays the following toward the financing or leasing of a replacement vehicle...
GAP pays the difference: $4,000
GAP Advantage also pays: $1,000
Total GAP Benefit: $5,000

GAP Example Graph:


* Deductible reimbursement is available in most, but not all states. Please consult your financing representative for the availability of this benefit.

Auto Advantage Program

Auto Deductible Reimbursement

This program is included for FREE with NHPCU GAP insurance.

  • Pays up to five hundred dollars ($500) per Loss (UNLIMITED losses per year) when a Loss is filed and paid by the auto insurance company for a Covered Auto the Member owns or leases evidenced by the title, registration or loan document, AND insured under an Auto Insurance Policy designating the Member as the Named Insured.

  • Loss means an event for which the auto insurance company has approved and paid a collision or comprehensive claim which exceeds the Auto Insurance Policy deductible for the Covered Auto.

  • Coverage is effective upon date of enrollment and will continue for 3 year(s) depending on the benefit period provided.

If the Member suffers a Loss during the benefit period which is covered by the Member's Auto Insurance Policy, the Member may be entitled to reimbursement of the Auto Insurance Policy deductible amount up to $500 per Loss. To be eligible for reimbursement the Member must own or lease and insure the Covered Auto under an Auto Insurance Policy designating the Member as the Named Insured.

The GAP Advantage gives you further peace of mind. If the vehicle you are now purchasing ever becomes "totaled", or is stolen and not recovered, GAP Advantage pays an additional $1,000.00 toward the purchase of a replacement vehicle. Not only will you receive the difference between the value of your vehicle and its unpaid loan or lease balance, you also get a head start on financing a new or used replacement vehicle when you refinance through the same financial institution.

Please contact us for further details.