Loan & Asset Protection

Guaranteed Asset Protection (GAP)

What is GAP?

Guaranteed Asset Protection is more commonly referred to as GAP. In the event that your vehicle is stolen or involved in a major accident and determined to be a “total loss,” GAP covers the difference between a vehicle’s current depreciated value and the amount you still owe on your loan.

Why do I need GAP?

  • Most insurance policies only cover the value of your vehicle. This is referred to as the “cash value” or “actual cash value” of your vehicle.
  • The value of vehicles rapidly declines within the first few years of ownership; therefore, your auto loan or lease balance could be higher than the value of your vehicle.
  • GAP provides coverage for new or used vehicles, including automobiles, motorcycles, boats, travel trailers, mobile homes, golf carts, jet skis, and more.
Mechanical Breakdown Protection (MBP)

What is MBP?

Mechanical breakdown protection, or MBP, reduces the possibility of out-of-pocket expenses when your vehicle suffers an unexpected failure. Some of the benefits of MBP include coverage throughout the entire United States, no deductible on covered parts and labor, and 24-hour roadside assistance including towing, flat tire assistant, lock-out service and battery jump starting. MBP also offers rental car vehicle allowance and coverage is easily transferable if you change vehicles before your agreement expires.

Do I need MBP?

As today’s vehicles continue to become more advanced, complex features such as electronics, high-tech sensors and computers can fail unexpectedly and need to be replaced. While engines and transmissions are more reliable than ever, other sophisticated technologies can fail causing repair costs to rise dramatically. Should your vehicle experience a failure after the manufacturer’s warranty expires, you will have no coverage for unexpected repair costs if you do not have an extended warranty or MBP.

Depending on the type of vehicle, model year and/or number of miles, there are a variety of different coverage options to best suit your individual needs:

  • Factory Type Coverage: Vehicles that are 7 model years old or newer that have 85,000 or less odometer miles.
  • Deluxe Coverage: Vehicles that are 11 model years old or newer that have 140,000 or less odometer miles.
  • Drive Train Coverage: Vehicles that are older than 11 model years old or that have more than 140,000 odometer miles.
  • Powersports: Motorcycles, ATVs or scooters.
Payment Protection

What is Payment Protection?

Payment Protection cancels your loan balance or payments up to the contract maximums. Protect your loan payments today so you can worry less about tomorrow.

Do I need Payment Protection?

Purchasing Payment Protection is voluntary and won’t affect your loan approval. It’s simple to apply. Ask your loan officer about eligibility, conditions, or exclusions.1  

Protecting your loan payments against life’s unexpected events could help protect your finances. Payment Protection applies in the event of…

  • Death – it cancels your payments or loan balance.2
  • Disability – it cancels your loan payments.2
  • Involuntary Unemployment – it cancels your loan payments.2


1. Please contact your loan representative or refer to the Member Agreement for a full explanation of the terms of Payment Protection with Life. You may cancel the protection at any time. If you cancel protection within 30 days of initiating coverage, you will receive a full refund of any fee paid. 2. Cancellation of payments or loan balance are limited to the contract maximums.

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