Guaranteed Asset Protection (GAP)

GAP Insurance covers the difference between the actual cash value of a vehicle and the balance still owed on its financing (loan, lease, etc) in the case of a total loss…

The Need

American Risk Services' GAP Program addresses several key problems: Should customers not make large down-payments on their loaned/leased vehicles, a 'gap' may exist between what is owed and what the vehicle is worth. In many cases, vehicle values decrease at rates faster than the unpaid balance of a loan or lease. Additionally, if a vehicle is either stolen or declared a total loss, the customer is normally held responsible for paying-off a potion of the finance contract, regardless of this loss.

The Solution – GAP

Guaranteed Asset Protection (GAP) waives either a portion or all of the remaining balance owed on the loan or lease after an insurance settlement is paid for the total loss of a vehicle. ARS' GAP Program is designed to protect buyers/lessees from unexpected expenses due to total losses, as well as protecting lenders/lessors from the collections and customer satisfaction problems associated with these charges.

Typically offered as an aftermarket product by dealerships to loan/lease customers or at the point-of-sale, GAP is sometimes available on a 'blanket' basis by the Lessor and included in all leases.

The Benefits

  • Provides peace-of-mind to customers at the time of a traumatic experience, can potentially eliminate financial hardship
  • Reduces deficiency balance collection activities and write-offs
  • Voluntary Program can generate fee income for associated Lender, Lessor and Dealers
  • Blanket Program differentiates the Lender and Lessor / products from the competition
  • Can be financed with the vehicle loan or lease
  • Contributes to customer satisfaction with repeat business

Additional Information

  • American Risk Services only works with insurance companies rated 'A' (Excellent) or better by A.M. Best Company


Scott Satterthwaite – Business Development Executive

Rich Henderson – Director of Client Services, Product Management