Vehicle Protection
Guaranteed Asset Protection (GAP)
GAP offers an additional measure of family security and peace-of-mind by reducing the financial burden that may be incurred if your vehicle is stolen or totaled. Additionally, GAP prevents the deficiency loan balance from being added to a new loan in the event of a total loss, and serves to protect your credit rating. GAP can be purchased at a low, one-time cost. Here's how it works:
What is Guaranteed Asset Protection (GAP)?
In the event your vehicle is totaled or stolen, your primary insurance company settlement can be significantly less than the outstanding loan or lease balance. This may create a deficiency balance or a “gap” resulting in a serious financial hardship for you. Not only do you need to finance a loan for a replacement vehicle but you would have to pay off the deficiency on your current loan. GAP covers the loan balance that your primary insurance carrier did not cover.
What are the Benefits of GAP?
- Low Cost protection with 60-day free look
- Protections provided for the term of the loan (up to 84 months)
- Covers primary insurance deductible up to $1,000 (not available in all states – consult your financial institution representative)
- NO model, mileage or year restrictions
- Eliminates the out-of-pocket expense for the remaining loan balance after loss settlement
- Helps the borrower avoid financial hardship and afford a replacement vehicle
- Prevents deficiency balance form being added to the new loan
- Helps protect the borrower’s credit rating
Can I buy this same type of coverage through my dealer?
Yes you can. But you will find GAP rates sold through dealerships are much higher in most cases.
How do I pay for the GAP coverage?
Normally, GAP is financed in with your loan. You may be able to pay the full GAP fee up front in one payment (consult your financial institution representative to see if this is an available payment option)
Will I receive something in the mail after I purchase GAP explaining the
coverage?
No, the GAP coverage is defined in the GAP Waiver Addendum or GAP certificate given to you at time of purchase.
Can I purchase GAP after loan origination?
Yes, you can purchase GAP any time after loan origination but it is not recommended after 18 months.
I am refinancing my loan can I purchase GAP at that time?
Yes, the GAP would cover the new loan term and balance.
What vehicles are eligible for GAP?
New and used autos, vans, SUV's and light trucks, up to 1 ton loan capacity are eligible. Other vehicles may be eligible, please consult your financial institution representative.
Can I buy GAP on a salvage/reconstructed titled vehicle?
No. Salvage or reconstructed title vehicles are not eligible for GAP.
I have an older car, is there an age limit?
As long as a value for the vehicle can be found in the regular NADA publication, it is eligible for GAP.
I will be using my vehicle for my business, can I buy GAP?
If the vehicle is titled under an individual, not a business name, it is eligible for GAP.
How do I file a claim?
Contact your financial institution to file a GAP claim. They will need a copy of your primary insurance company's settlement worksheet once they settled your claim. The GAP claim payment is paid back through your financial institution and applied to your loan.
Is there a deadline to file a GAP claim?
GAP claims must be filed within 60 days from the date of your primary carrier's settlement.
How do I receive payment for the GAP Claim?
The GAP claim settlement is paid to your financial institutions and applied to your loan.
Does GAP replace my comp and collision coverage?
No, GAP is not a substitute for collision or property damage insurance.
How is my deductible covered by GAP?
The primary insurance deductible is covered as part of your unpaid loan balance; it is not "reimbursed". GAP covers the difference between the actual cash value (ACV) of your vehicle and the outstanding loan balance. Since your insurance company pays ACV less the amount of your deductible, the "gap" is increased by this amount. When your loan balance is paid off by GAP the deductible is paid as part of that balance. Deductible coverage is available in most but not all states. Consult your financial institution representative.
If my primary insurance pays off my loan balance in full does GAP reimburse me for my deductible?
No. See "How is my deductible covered" question above. You did not actually pay for the deductible, so GAP does not pay the deductible back to you.
Does GAP cover towing and storage expenses?
No, it does not.
What is the maximum amount GAP will pay?
Maximum GAP loss covered is $50,000.
Does GAP pay if I am uninsured?
If there is no primary insurance, GAP pays the difference between the actual cash value of your vehicle, at the time of loss, and the outstanding balance of your loan. Most likely GAP would not pay off the loan balance in full in this situation.
I have GAP and am going to refinance my loan – does the GAP transfer to the new loan?
GAP could transfer to the refinanced loan however, if any money is added to the loan or the term extended when the loan is refinanced, GAP will not cover these. The GAP you purchased is an Addendum to the loan contract on which it was sold.
Can GAP be transferred to a different vehicle?
No, GAP cannot be transferred to another vehicle. The GAP waiver purchased is an addendum to the loan contract on which it was sold and protects the vehicle listed on the original loan agreement only.
I am refinancing my loan from another financial institution – can the GAP transfer to my new loan?
No, GAP coverage is non-transferable.
I am going to have additional funds added to my loan – do I need to purchase a new GAP enrollment?
Yes. Any additions or modifications to your loan will not be covered unless you purchase a new GAP enrollment. The GAP you originally purchased is an addendum to the loan on which it was sold so any monies added to the loan would not be covered.
Can I purchase my salvage back from my insurance company?
If you purchase your salvage from your insurance company, they will deduct this amount from what they pay. This amount of this deduction will not be covered by GAP.
If I am past due on my loan, how does this affect the GAP settlement?
GAP will cover past due payments up to 30 days*, if you are past due more than that, the past due payments will be deducted from the GAP settlement. This includes skipped payments as part of a lender skip a pay program. GAP does not cover any late charges.
*This can vary - consult your financial institution representative for number of past due payments covered with your program.
I have a service warranty policy on my vehicle – does this affect the GAP claim?
GAP does not cover the refundable portion of any service warranty or full term credit life insurance since you can obtain this reimbursement back by canceling the policies with the appropriate companies.
My car has been totaled, should I continue to make payments on my loan?
Yes, continue to make your loan payments and notify your financial institution representative of the total loss as soon as possible.
What is the GAP advantage (GAP Plus)?
GAP Advantage is an additional $1,000 benefit toward the financing of a replacement vehicle.
What conditions must be met to make me eligible for the GAP advantage benefit?
- There must be a total loss to your vehicle
- You must finance a replacement vehicle with the same institution within 90 days of the date of your primary insurance settlement
- Must file for the claim for the Advantage within 95 days of the date of your primary insurance settlement
If there is no “GAP” after my primary insurance pays, am I still eligible for the GAP advantage coverage?
Yes. You are eligible for the GAP Advantage benefit in the event of a Total Loss to the Eligible Collateral listed in the GAP Waiver Addendum.
How is the GAP advantage paid?
The benefit is paid through the financial institution and is applied as a credit to your new loan. It is not paid as a cash benefit to the borrower.
Guaranteed Asset Protection
Mechanical Breakdown Protection (MBP)
Your vehicle is a major investment. That is why purchasing mechanical breakdown protection (MBP) is a wise choice. MBP can help ensure that the investment in your vehicle is protected, and reduces the possibility of out-of-pocket expenses when your vehicle suffers an unexpected mechanical failure. Most important of all, Mechanical Breakdown Protection provides peace of mind so you can experience worry-free driving!
- Nationwide Protection
- 24-Hour Roadside Assistance for the term of your coverage
- Rental Vehicle Assistance
- Transferable coverage if you sell your vehicle before your agreement expires
I have had good luck with my vehicle so far. Do I really need mechanical
breakdown protection?
A Mechanical Breakdown Protection plan buys you "Peace-Of-Mind" for "Pennies per Day". A Mechanical Breakdown Protection plan will help insure that your vehicle is kept in the best repair condition and it can save you thousands in the event of mechanical failure during the term of your coverage. Vehicles are becoming increasingly complex. Consequently, a single major repair typically can cost more than the cost of mechanical breakdown coverage.
I’m still covered by the manufacturer. Why not wait until later to purchase
mechanical breakdown protection?
The pricing of our extended warranty is based on mileage, age and other factors. The sooner you purchase your extended warranty, the less it will cost. As your vehicle gets older, the price for protection increases and the available terms of coverage (months/miles) decreases. You also run the risk of becoming ineligible for coverage the longer you wait. Another thing to consider is that pricing may increase over time due to increasing parts and labor prices. Lock in today's low prices and protect yourself from tomorrow's rising repair rates.
How much does mechanical breakdown protection cost?
It depends! Our Mechanical Breakdown Protection Plans provide Peace-of-Mind for "Pennies per Day"! Use our FREE state-of-the-art online quoting system to determine your cost.
How do I purchase mechanical breakdown protection?
Start with a FREE Quote. Our state-of-the-art online quoting system will step you through the process. You will not be asked for any personal identifying information until you decide to "Submit" or "Save" your quote. When you "Submit" or "Save" your quote, you will be prompted for your name, telephone number and address. By submitting your quote, you're requesting one of our loan service representatives to contact you to complete the transaction.
Am I obligated to purchase mechanical breakdown protection if I request a quote?
Our quotes are really FREE! In fact you can use our state-of-the-art online quoting system to receive as many FREE quotes as you need. We won't ask you for any personal identifying information until you "Save" or "Submit" your quote.
What if I am not satisfied with my purchase?
We offer a 30-day (60 days in FL) "Free Look Period". If you are not satisfied with your purchase, you can cancel anytime within the Free Look Period and receive a 100% refund. If you cancel after the Free Look Period, you may be eligible for a partial refund.
What are the most important things to remember after I purchase an extended warranty?
- Call us before any repair work is started on your vehicle
- Change your oil and filters on a regular basis
- Perform other recommended maintenance
- Keep your receipts for the record
Are vehicles with pre–existing conditions covered?
No. Benefits are not provided for a condition which can be shown to have existed prior to the effective date of the contract, or which existed prior to the expiration of the manufacturer's warranty.
If my vehicle is out of the manufacturer’s warranty, can I still get coverage?
You may still be eligible to purchase our Mechanical Breakdown Protection depending upon the age, mileage, purchase date and other factors.
I bought a used car from a private party, can I get coverage?
You are eligible for the same coverage no matter who you purchase the vehicle from. However,
eligibility for coverage may depend upon when you purchased the vehicle and other factors. To
determine if your vehicle is eligible, simply use our FREE state-of-the-art online quoting system.
Do you provide coverage for new as well as used vehicles?
Yes. If your vehicle qualifies, we provide coverage on both new and pre-owned vehicles. The vehicle's age, mileage and other factors will determine the coverage that is available. To determine if your vehicle qualifies for a Mechanical Breakdown Protection Plan, simply use our FREE state-of-the-art quoting system.
Do you provide coverage for SUV’s and Trucks?
Yes. Most SUV's and most trucks/vans less than 1 ton qualify for extended service plans. To see if your vehicle qualifies, simply use our FREE state-of-the-art online quoting system.
Do you provide coverage for one ton vehicles?
It depends! To determine if your vehicle qualifies for a Mechanical Breakdown Protection Plan, simply use our FREE state-of-the-art quoting system.
What vehicles are ineligible for a mechanical breakdown protection plan?
If it is not listed in our FREE state-of-the-art online quoting system, then it is not covered. To determine if your vehicle is eligible (or not) simply use our FREE state-of-the-art online quoting system. Examples of excluded vehicles include:
- Limited Production
- Exotic, High Performance Vehicles
- Modified or Concept Vehicles
- Gray Market Vehicles
- Any vehicle with a "salvage", "junk", "flood damage" or "reconstructed" title
- Any vehicle where the odometer has been altered in any way
- Any vehicle that has ceased to operate and repairs have not been made immediately
- Any vehicle that has been declared a "lemon"
- Any vehicle With a Known Failure at the Time of Sale
- Any vehicle that does not have a valid manufacturer VIN (Vehicle Identification Number)
- Any vehicle with engine, transmission, drive axle, frame, suspension, emissions and/or
exhaust modifications
Do I have to go back to my original dealer for repairs?
The choice is yours. You can take your vehicle to any licensed repair facility you choose in the US and Canada.
How much is my deductible?
The deductible on all Route 66 plans is zero.
Can I do my own repairs?
No. Repairs must be performed at a Licensed Repair Facility.
If I have a claim on my vehicle, what is the procedure?
If your vehicle needs repair, drive it (or have it towed) to the nearest licensed repair facility and present your contract/policy to the service department. The repair facility will call our claims administrator to receive repair authorization for all your covered repairs. Claims are paid directly to the repair facility via our corporate credit card. The following is a summary of the procedure:
- Take your vehicle to an ASE licensed service facility in the United States or Canada.
- Give the service manager your Mechanical Breakdown Protection Plan information.
- The service manager will determine the necessary repairs and should call the Plan Administrator to obtain a repair authorization number before any repairs are made.
- After repairs are completed, the service facility will ask you to authorize the repair order
with your signature. He will then fax the authorized repair order to the Plan Administrator. - The Plan Administrator will pay the service facility via corporate credit card.
Are parts, labor, and applicable taxes covered?
Our Plans authorize covered components, including parts and labor charges, which are based on published list prices and established industry time and labor guides. Authorized repairs are subject to the terms of the respective agreement. The member is responsible for any diagnostic fees, fluids, and taxes.
Does your mechanical breakdown protection plan cover “Wear and tear”?
Yes, our plans will cover a part that has worn beyond the "Manufacturer's Tolerance" and has resulted in a verifiable mechanical breakdown of the part, not just a gradual reduction of operating performance. Please keep in mind that routine maintenance items like brake pads/shoes, spark plugs, tune-up items, oil and Lubricant Changes, etc. are not covered.
Are maintenance items such as oil changes and brake pads covered?
Routine maintenance items such as oil changes, filters, brake pads, spark plugs, tune ups, etc. are not covered by your Mechanical Breakdown Protection plan. You must retain verifiable receipts that you have had the recommended maintenance service performed on your vehicle.
What is mechanical breakdown protection?
Mechanical Breakdown Insurance, also known as an Extended Warranty, is automobile protection that extends beyond the manufacturer's factory warranty and covers repairs of unexpected mechanical breakdowns. For the period of time the contract is in effect, you are assured that covered components of your vehicle will be repaired in the event of failure, including labor, subject to any applicable deductible.
What is the “in service” date?
The in-service date of a vehicle, also known as the manufacturer's warranty start date, is the date the manufacturer's factory warranty went in to effect, generally the original purchase date of the vehicle when it was brand new.
Where is my vehicle identification number (VIN)?
Your Vehicle Identification Number (VIN) can be located in any of the following places:
- On your vehicle Insurance Card
- On a tag on the dashboard
- On a sticker that is attached to the driver-side door edge
- On your vehicle registration
What is the definition of a “Light commercial use” vehicle?
Business/Commercial use means the use of your vehicle for purposes other than personal and private use. Some examples of business/commercial use are farming, ranching, deliveries, construction, rodeo, etc.
What is the difference between a “Named exclusion” plan and a “Named
component” plan?
These are the two primary types of extended service plans. "Named Exclusion" is the more
comprehensive extended service plan. In this extended service plan, every component is
included unless a component is specifically named to be excluded. In the "Named Component"
extended service plan, only the parts that are specifically named are covered.
What does it mean to be externally refinanced at a competing institution?
An external refinance is a loan resulting from the payoff of a loan from a competing financial
institution.
