Covenant Health Credit Union | A division of Consumer Credit Union

GAP - Guaranteed Asset Protection (GAP)

GAP and ADR offer peace of mind for your vehicle purchase. GAP isn't insurance, it simply covers the "gap" between a vehicle's value and the amount still owed on the vehicle. ADR is insurance that provides reimbursement for an auto insurance deductible. Reimbursement will be equal to the covered auto deductible on the auto policy, up to $500 per loss with a maximum of two (2) benefits per year.


If a vehicle is totaled or stolen, the primary insurance policy will usually cover only 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.
GAP is available for a purchase or refinance of a car or truck up to 72 months maximum loan term.



  1. Maximum Term shall not exceed 72 months
  2. Up to $500.00 primary insurance deductible is covered
  3. Up to 125% maximum benefit limits as determined by the Established Retail Guide.
  4. Replacement Vehicle Benefit $1,000.00 (if applicable)
  5. Maximum Limits of Liability $50,000.00.


Call 865-541-1239 or any of our offices for more inform