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Knowledge Base Article

GAP Protection

What is GAP?

Guaranteed Asset Protection (GAP) is a voluntary, non-insurance product designed to waive the remaining qualifying loan balance not covered by your primary insurance carrier settlement in an event of a total loss or uncovered theft. GAP is not auto insurance but a deficiency waiver. It is subject to limitation and exclusion including but not limited to loan to value maximum, delinquent payments, late charges, refundable service warranty contract and other insurance related charges.

What does GAP cover?

GAP covers the qualifying difference between the borrower's outstanding loan balance and the actual cash value of the vehicle up to the maximum loan to value %. GAP may also cover up to $1000 of your deductible if there is a "gap" after your primary insurance settlement is paid. 

Please note: GAP cannot provide protection beyond two (2) additional payments of the original repayment schedule of the loan. For example, if you have taken 4 payment holidays, GAP will only cover the monthly payment amounts of 2 of those payment holidays.

When can I purchase GAP?

It can be purchased on any automobile regardless of the age or mileage on the vehicle at the time of a new loan or refinance with Delta Community Credit Union. The maximum term for GAP is 84 months and the maximum loan amount is $100,000.

If I have GAP and I refinance an auto loan currently with Delta Community, do I have to purchase GAP again?

Any modification to a Delta Community car loan that has an existing GAP, you must repurchase the GAP for the new loan to be fully covered.

What is the cost of GAP and is it refundable?

GAP is available in two primary options; either Non-Refundable GAP at a cost of $430 or Refundable GAP at a cost of $625. All options offer a 60 day free look.

I have totaled my car and filed a GAP claim, do I need to make my payment?

You are responsible for all payments on the loan as agreed on your loan contract. Any overpayments made through the GAP claim will be reimbursed to you upon claim payment.

What is the time frame for receiving a refund from the GAP if I cancel under the new terms and conditions?

Please allow 4-6 weeks for a refund. For loans that still exist, the refund will be applied to the loan. If the loan is paid off, the refund will be deposited to your Savings Account.