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.