Companion GAP Plus from iA through OCAL. If your financed vehicle is written off or stolen, it pays the gap between what you owe and the insurance payout.
Short answer If your vehicle is written off or stolen, your insurer pays what it was worth that day, not what you still owe. Companion GAP Plus from iA pays the difference, up to $50,000 or 150 percent of MSRP or Black Book retail, plus up to $1,000 of your deductible, so you are not paying for a vehicle you no longer have. Optional, and it can be included in your financing.
Get approvedA vehicle loses value faster than a loan pays down, so for the first few years most people owe more than the vehicle is worth.
The gap is widest when the loan is long, the down payment is small, or negative equity from a previous loan was rolled into this one. Your insurer settles a total loss at the vehicle's actual cash value on the day of the loss. The loan does not shrink to match. Whatever is left is yours to pay, and the vehicle is gone.
We write about this often, because we see it every week: being upside down on a car loan, what happens when the car is written off and you still owe money, and how to trade in a car with negative equity. GAP protection is the product built for that shortfall.
Two numbers from the Insurance Bureau of Canada and Transport Canada frame the risk: in 2022 a vehicle was stolen in Canada every six minutes, one of the highest rates in the world, and there were 108,018 reported traffic collisions in 2020. A total loss is not rare.
It tops up your insurer's total loss payout so the loan is cleared, and it adds a few things most people do not expect.
The shortfall. The negative equity between your insurer's payout and your loan balance, up to the lesser of $50,000 or 150 percent of MSRP or Canadian Black Book retail.
Refinanced negative equity. Negative equity carried over from a previous vehicle loan is included in the benefit.
Your deductible. Up to $1,000 of your standard insurance deductible on a total loss.
A loyalty credit. Up to $500 toward a replacement vehicle bought from the same dealer.
Your credit rating. A total loss does not turn into an unpaid balance that follows you.
Coverage is available for amounts financed up to $150,000, and the rate is locked in for terms up to eight years.
Here is iA's own illustration of a loan at month 48 of a longer term. It is an example, not a quote; your figures depend on your loan, your vehicle and your insurer's settlement.
| Item | Amount |
|---|---|
| Balance owing on the loan at 48 months | $27,000 |
| Total loss payout from the insurer | $12,500 |
| Shortfall, or the gap | $14,500 |
| Loyalty credit toward a replacement vehicle | $500 |
| Insurance deductible included | $1,000 |
| Companion GAP Plus pays | $16,000 |
Without the product, the $14,500 shortfall and the $1,000 deductible are paid from your pocket, on a vehicle you no longer drive.
It earns its keep when the loan is likely to stay ahead of the vehicle's value for a long stretch.
Long terms. Loans of 72 to 96 months pay down slowly in the early years.
Little or no down payment. See our note on zero-down car loans: the smaller the down payment, the larger the gap.
Negative equity rolled in. If you carried a balance from your last vehicle into this loan, you start out behind.
Vehicles that depreciate quickly. Some models lose value faster than others.
A shortfall you could not absorb. If paying several thousand dollars for a vehicle you no longer have would hurt, this is the risk the product removes.
The honest other side: with a large down payment and a short term, the gap may be small and close quickly. Your specialist will show you where your loan sits so you can decide.
Ask your specialist. The premium is a one-time amount that can be included in your vehicle finance or lease agreement, which works out to a few dollars a month over the term.
The figure depends on the amount financed and the term. You see it, and the total cost of borrowing, before you sign, and you can decline. Buying protection is optional and never a condition of approval. Use the loan calculator to see what a small change to the amount financed does to the payment.
GAP covers the loan if the vehicle is lost. An extended warranty covers the vehicle if a part fails. Many customers take both. If you have not applied yet, the online application takes about two minutes and uses a soft credit check.
More general questions are answered on our frequently asked questions page.
No. You still need your own insurance (ICBC in British Columbia, a private insurer in Alberta). GAP sits on top of that policy and pays the part of the loan your insurer's total loss settlement does not cover.
No. It is optional and never a condition of approval. The lender's decision does not depend on it.
Yes. It applies when the vehicle is written off as a total loss due to accident, fire or theft.
Up to $1,000 of your standard insurance deductible is included on a total loss.
Yes. Refinanced negative equity from previous vehicle debt is included in the benefit, up to the maximum.
The lesser of $50,000 or 150 percent of MSRP or Canadian Black Book retail value, for amounts financed up to $150,000.
The policy sets out what happens on early payout and the cancellation terms. Ask your specialist before you sign, and read the policy when you receive it.
Call iA Dealer Services GAP claims at 1 877 356-6636 or email gap.claims.iads@ia.ca after your insurer has settled the total loss. Administration is 1 800 663-9498.
Companion GAP Plus is administered and underwritten by Industrial Alliance Pacific General Insurance Corporation, a member of iA Financial Group. iA Dealer Services is a division of iA Financial Group (Industrial Alliance Insurance and Financial Services Inc.). OCAL Financial Inc. offers the product to its customers as a licensed motor dealer; we do not underwrite it or pay claims. This page is a summary and is not a contract or policy. Your policy sets out the specific terms, conditions, limitations and exclusions that apply to your coverage. Administration: 1 800 663-9498, admin.iads@ia.ca. Claims: 1 877 356-6636, gap.claims.iads@ia.ca.
In British Columbia, we are OCAL Financial Inc., licensed motor dealer, VSA #D50207. In Alberta, we are an AMVIC-licensed business, AMVIC #B2036050. OCAL arranges financing through third-party lenders and does not lend or set rates. Approval is always the lender's decision. All financing is OAC.
If you have not applied yet, the first step does not touch your credit score. Once a lender has approved you, your specialist will show you where your loan sits against the vehicle's value and what GAP protection would cost, before you sign anything.
Get approvedTwo minutes. No obligation. No hit to your credit score.
or call 1-877-495-2012