If all goes well, your car or truck will be around for years to come. Unfortunately, things don’t always go as planned. If your vehicle is damaged, stolen, or totaled beyond repair, our Guaranteed Asset Protection / Auto Deductible Reimbursement protection products may save you hundreds or even thousands in out-of-pocket expenses.
Guaranteed Asset Protection (GAP)
GAP coverage will pay the difference between the amount paid by the primary insurer (the actual cash value) and your outstanding loan balance. It also pays your primary insurance deductible, up to $1,000, plus $1,000 towards the purchase of another vehicle that is financed at Novation!
Auto Deductible Reimbursement (ADR)
This protection, which is included with the purchase of GAP (for autos and trucks only), offers our members additional coverage that will help cover out-of-pocket expenses, such as your insurance deductible when you have an accident or mishap with your vehicle. Specifics about ADR include:
- It will pay up to $500 per loss (limit of two losses per year) when claim is filed and paid with primary insurance carrier.
- A loss means an event for which the auto insurance company has approved and paid a claim which exceeds the Covered Auto Deductible for a collision or comprehensive claim.
- The coverage is effective upon date of enrollment and continues for three (3) years. After the three year period, this feature is no longer valid, though the GAP program continues for the life of the loan.
If you suffer a loss during the Coverage Period of your Auto Policy, you may be entitled to reimbursement of the Covered Auto Deductible. Reimbursement will be equal to the Covered Auto Deductible on the Auto Policy, up to $500 per loss.
Not only does ADR provide this benefit on the vehicle for which the GAP was purchased, but it also covers any other insured vehicle registered in the member’s name and address. This can be a significant added-value benefit to those of you with more than one vehicle in the household!
When considering your next auto loan with Novation, please be sure to ask your Financial Services Officer about these outstanding insurance protection options.