GAP Insurance

A GAP plan enhances your existing insurance coverage

Consider this: your vehicle drops in value the second you leave the dealer’s lot. And your vehicle’s value will sharply decline during the first few years of ownership. This means your loan or lease balance could be higher than your vehicle value if your vehicle is stolen or totaled.

That’s where a Guaranteed Asset Protection (GAP) plan makes sense. It’s a voluntary, non-insurance program that waives the difference between your primary insurance company’s settlement and the payoff of your loan balance up to a certain loan-to-value maximum, less any exclusions or limitations. Included in this waiver is your insurance deductible up to $1,000.*

How GAP works

Here’s an example of GAP in action if your financed vehicle is totaled beyond repair:

Your loan balance:

$15,000

Your insurance company settlement:

$10,000

based on your vehicle’s market value

$11,000

less your insurance deductible

$1,000

Low balance remaining without GAP

$5,000

Low balance remaining with GAP

To learn more about how GAP can help protect you in the event of significant loss to your financed vehicle, contact MHCU at eServices@mhcu.org or 859.259.3466.

Ready to purchase a Guaranteed Asset Protection (GAP) plan?

* Deductible waiver is available in most, but not all states. Please consult your financing representative for the availability of this benefit.

** GAP is subject to limitations and exclusions, please consult your financing representative to determine if your vehicle is eligible for GAP.

This product is optional. GAP is a loan/lease deficiency waiver and is not offered as insurance coverage. Whether or not you purchase GAP will not affect your application for credit or the terms of any existing credit agreement you have with us.

We will give you additional information before you are required to pay for the program. This information will include your cost and a copy of the contract, containing the terms and conditions of the program.

There are eligibility requirements, conditions, limitations and exclusions that could prevent you from receiving benefits under the program. You should carefully read the GAP Waiver Addendum for a full explanation of the terms and conditions of the program.

Protect your financed vehicle

A GAP plan enhances your existing insurance coverage

Who does GAP protect?

How GAP works

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