Guaranteed Asset Protection (GAP)

If a vehicle is totaled or stolen, the primary insurance policy will usually cover only the depreciated value of the vehicle.  Likely, the insurance settlement will not cover the vehicle’s entire loan payoff – creating what can be a significant deficiency balance or “gap” – and the borrower is responsible for paying the difference.  Low used car values, extended loan terms, small down payments, and frequent trade-ups can drive a borrower further upside down.

Guaranteed asset protection (GAP) is a deficiency balance waiver designed to eliminate the borrower’s unpaid net balance in the event that the vehicle is stolen or damaged beyond repair.  GAP relieves the borrower of the responsibility for the deficiency balance not covered by the primary insurance policy, subject to program terms.

Advantages of ESA’s GAP program:

  • Flexible coverage options can be tailored to meet your borrowers’ specific needs.
  • GAP sales provide a great source of fee income.
  • Cover many types of collateral, including passenger automobiles and trucks, motorcycles, ATVs, watercraft, and recreational vehicles.
  • Administration is easy through your choice of enrollment and reporting methods.
  • Simplify discussions with borrowers – offer GAP, warranty, and credit insurance programs with our all-in-one quoting tool.

Request More Information
For information about our GAP program, contact us at 800-676-1609 or

Evans, Simpson and Associates, Inc.
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