Guaranteed Asset Protection (GAP)

Your auto insurance is designed to help protect your vehicle, but in the event of a total loss, the insurance payout may be less than the remaining balance on your auto loan. Guaranteed Asset Protection, commonly known as GAP, can help cover the difference so you are not left paying out of pocket for a vehicle you can no longer drive.

Visit a branch or contact us to learn more about adding GAP to your Union Square auto loan.

What is GAP? 

GAP is an optional protection product that may help cover the difference between what your insurance company pays after a covered total loss and what you still owe on your auto loan.

How does GAP Work? 

If your vehicle is totaled or stolen and your insurance settlement does not fully pay off your loan balance, GAP may help reduce or cancel the remaining amount owed, subject to the terms of your coverage.

Example: How GAP May Help

Let’s say your vehicle is declared a total loss after an accident. Your insurance company determines the vehicle’s value is $22,000, but you still owe $26,000 on your auto loan.

That leaves a $4,000 difference between your insurance payout and your remaining loan balance.

With GAP, that remaining balance may be covered, subject to the terms of your coverage, helping reduce the amount you would otherwise owe out of pocket.

Additional benefit: Auto Deductible Reimbursement

Your GAP coverage may also include Auto Deductible Reimbursement, which can help reimburse your insurance deductible after a covered claim, subject to the terms of your coverage.

This added benefit can help reduce out-of-pocket costs when the unexpected happens.

Why consider GAP?

GAP may be helpful because:

• Vehicles can depreciate quickly.
• Your insurance payout may be based on the vehicle’s value, not your loan balance.
• A total loss could leave you owing money on a vehicle you can no longer use.
• GAP may help lessen the financial stress of an unexpected loss.

Who should consider GAP?

GAP may be worth considering if you:

• Financed a new or newer vehicle.
• Chose a longer loan term.
• Made a smaller down payment.
• Rolled taxes, fees, or other costs into your loan.
• Want added peace of mind with your auto loan.

Already financed your vehicle?

If you financed your vehicle with Union Square and did not add GAP at the time of purchase, you may still have options. GAP may be available through Union Square at a competitive cost, helping you add another layer of protection to your auto loan.

Visit a branch or contact us to learn more about adding GAP to your Union Square auto loan.

*1. GAP is subject to limitations and exclusions, including, but not limited to, LTV maximums, delinquent payments, late charges, refundable service warranty contracts, and other insurance-related charges.  2. Loan modifications that cause an increase in the loan balance, the loan to pay down more slowly, or extend the original loan term would not be covered and require the purchase of a new GAP Waiver to be fully covered. 3. A GAP claim must be filed within 60 days from the date of the primary carrier's settlement. If there is no primary carrier, the claim must be filed within 60 days from the date of loss. 4. GAP may be canceled within the first 60 days for a full refund. After 60 days from the GAP effective date, the protection is nonrefundable. In the event of a GAP claim, the GAP fee charged to the borrower will be deemed fully earned, and therefore, no refund will be due.  5. Commercial vehicles, including ridesharing and food delivery autos, are not eligible.