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Guaranteed Asset Protection
Safeguard Yourself From Potential Financial Burdens In The Event That Your Vehicle Is Totaled Or Stolen

What Is GAP Coverage?

Guaranteed Asset Protection (GAP) covers the difference between what you owe and what your car is worth. GAP helps borrowers and lenders avoid financial loss by waiving all or a portion of the deficiency between a borrower’s auto loan payoff amount and the actual cash value of the vehicle in the event it is totaled or stolen. Having GAP protects you against a potential financial burden and safeguard your hard-earned credit.

A few situations to consider GAP coverage: 

  • You financed a car beyond a 60-month term
  • Negative equity was rolled into the new loan from a past auto loan
  • If your down payment was less than 20 percent

How GAP Works

GAP Protection is meant to protect you against unexpected losses, typically saving the borrower thousands of dollars in a total loss. GAP waives the difference between your outstanding loan or lease balance and the actual cash value of your vehicle on the date of loss.

A graph depicting how GAP insurance works
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Pro Tip:

• You can lose up to 25% of your vehicle’s value in the first year.

• Domestic vehicles often depreciate at faster levels than imports.


Without GAP protection, you may have to keep paying for a vehicle you can no longer drive. It can be very difficult to get a new auto loan with an existing, unsettled auto loan balance still on your credit file. This unpaid balance is typically thousands of dollars for the average consumer.

Millions of vehicles are totaled each year by collision, theft, and natural disasters. Customers are often surprised to learn that their auto insurance settlement is thousands of dollars less than what they owe on their auto loan or lease. Loan term longer than 4 years or that included less than a 20% down payment are at even greater risk.

Image to explain GAP Protection
Whether You Want To Lower Your Payment Or Pay Less Interest, Gravity Lending Can Help You Explore Your Saving Possibilities