Safeguard customers with

financial loss +
INCIDENT PROTECTION

Financial Loss protection safeguards customers from unexpected curve balls such as a motor vehicle accident that is deemed a write-off, or a minor accident that leaves a damage record on the vehicle’s title. A situation like this leaves your customer in a negative equity situation because their insurance provider will not cover the amount owing on the vehicle.

In most cases, competitive Guaranteed Asset Protection Programs (or GAP Protection for short) don’t cover accidents or declarations on a vehicle’s policy that affect its trade-in value. Auto Shield Canada’s FLIP Membership covers the shortfall in trade-in value caused by these incidents, creating an industry-leading level of protection that is unmatched in the F&I industry.

Our Financial Loss and Incident Protection (FLIP) Membership enables your customer to access benefits that can be used towards the purchase of a replacement vehicle or negative equity coverage at the time of trade-in, providing the true financial loss protection that automotive customers in today’s rapidly evolving market are looking for!

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Automotive Financial Loss Coverage for When the Primary Insurer Payout Falls Short

This unique F&I Membership offers exclusive benefits to customers when they are looking for additional protection to safeguard their finances. Here are some examples of how our automotive financial loss coverage payout can protect your customer from a negative equity situation. 

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Automotive Incident Protection Coverage for Trade-In Value

If unexpected events happen to your customer’s vehicle – like an accident and the vehicle is repaired, they could end up with a damage record on their vehicle’s history report. In most cases, the vehicle will be worth less than it was before the accident due to the damage caused, leaving them with a financial loss at the time of trade-in.    

This benefit gives your customer access to funds that can be used when they purchase or lease their next vehicle at the original selling dealer. 

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How the Auto Shield Canada Financial Loss +
Incident Protection
Membership is Structured

This industry-leading F&I Membership provides three main advantages to provide true Financial Loss, Negative Equity and Incident Protection on your customer’s vehicle. These advantages can be bundled together or used separately to create flexible protection options at the time of vehicle purchase, to ensure that automotive customers are never left in a bad situation at the time of trade-in. 

The exclusive benefits in our Financial Loss + Incident Protection Membership include: 

Advantage 1: Financial Loss Benefit on a New Purchase
New Vehicle Financed Amount
$50,000
Less: Insurance Settlement
$40,000
Negative Equity
($10,000)
Financial Loss Credit*
$10,000
Advantage 1: Financial Loss Benefit on a New Purchase
New Vehicle Financed Amount
$50,000
Less: Insurance Settlement
$40,000
Negative Equity
($10,000)
Financial Loss Credit*
$10,000

*Maximum Financial Loss In-Store Credit up to $35,000

Advantage 1+2: Financial Loss Benefit on a New Purchase
New Vehicle Financed Amount
$50,000
Vehicle Trade-In Negative Equity
$12,000
Total Financed Amount
$62,000
Less: Insurance Settlement
-$43,000
Insurance Settlement Shortfall
($19,000)
Financial Loss Credit*
$19,000
Advantage 1+2: Financial Loss Benefit on a New Purchase
New Vehicle Financed Amount
$50,000
Vehicle Trade-In Negative Equity
$12,000
Total Financed Amount
$62,000
Less: Insurance Settlement
-$43,000
Insurance Settlement Shortfall
($19,000)
Financial Loss Credit*
$19,000

*Maximum Financial Loss In-Store Credit up to $50,000

Advantage 3: Incident Protection
Vehicle Purchase Amount:
In-Store Credit Options:
Up to $40,000
$2,500 or $5,000
$40,001 and Up
$2,500, $5,000 or $7,500
Advantage 3: Incident Protection
Vehicle Purchase Amount:
In-Store Credit Options:
Up to $40,000
$2,500 or $5,000
$40,001 and Up
$2,500, $5,000 or $7,500

Note: There are some prerequisites that determine which Advantages can be paired together.
For more information on which Advantages can be paired together, click the button below.

FLIP Membership Bundle Options

More features

ADDITIONAL negative equity coverage with financial loss membership protection

Available for new, leased and pre-owned vehicles

Coverage available for up to 96 months

Available for loans up to $150,000

Program offers up to $50,000 of in-store
Member Credits

Up to $1,000
Insurance Deductible Reimbursement

Pay-out based on
amount financed
(see the table above)​

*For full program details, please refer to the Terms + Conditions of this Membership.

Commonly asked questions

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What is Guaranteed Asset Protection (GAP)? How does FLIP compare?

Guaranteed Asset Protection (GAP) Insurance may help fill the gap between what the customer’s vehicle insurance will be liable to pay and what they owe on their loan if their vehicle has been deemed a total loss after an appraisal.   

Our Financial Loss and Incident Protection (FLIP) Membership helps your customer cover unexpected costs if their vehicle was deemed a total loss by their insurance company or they are in an accident that leaves a damaged record on the vehicle’s title. Think of it like additional financial loss and incident protection for negative equity coverage above and beyond GAP

How does GAP Insurance work? Does FLIP do the same?

GAP Insurance protection is an annulment or renunciation of the customer’s remaining loan balance with their credit union or bank.  

Our Financial Loss and Incident Protection Membership will work in addition to any payout your customer will receive from comprehensive coverage through the primary insurer. Think of it as supplemental financial loss coverage if the vehicle is damaged, totalled or stolen and not recovered, or an incident affects the customer’s trade-in value. 

What does GAP Insurance cover? Does FLIP cover the same?

Most new and/or used vehicles that are being financed or leased can be covered by GAP insurance. Our FLIP Membership covers most new and/or used vehicles that are being financed or leased by your customer. 

What is not covered by the FLIP Membership?

  • Our FLIP Membership does not cover wages due to financial hardship, job loss, disability or death. See our Job Loss Membership for more details, as certain circumstances are covered by this type of financial loss. 
  • Repairs to the vehicle are not covered by the FLIP Membership. Please see more about our Road Hazard Protection Program and our Warranty Programs for more information. 
  • Our FLIP Membership does not cover the value of the vehicle or the balance on a loan if their vehicle is repossessed. 
  • The FLIP Membership does not cover the cost of a rental vehicle if the vehicle is being repaired. 

How does the FLIP Membership work with depreciation?

Vehicles commonly lose 10% of their value the day customers drive their new pride and joy home for the first time, and they’ll lose an additional 10% of their value in the first year of ownership. In most situations, the insurance company will only pay what a vehicle is appraised to be worth at the time of loss. If your customer owes more money on the loan or lease than the vehicle’s estimated worth, our FLIP Membership will cover the difference for them at the time of a total loss.  

Is FLIP Protection really needed?

Suppose your customer has purchased a vehicle with a tendency to depreciate quickly or they have taken on a vehicle loan or lease in which the amount owed is more than the vehicle is worth. In that case, they should invest in financial loss coverage with our FLIP Membership for protection in the event of a total loss. 

Imagine that, through no fault of your own, your vehicle is stolen and not recovered. Your insurer payout leaves you with a $15,000 balance payable (often, which becomes a demand loan because of the lack of security), and you have no vehicle! This puts you/your customer in a highly precarious situation and can lead to serious financial ramifications for their credit and financial future. 

How does someone enroll for the FLIP Membership?

To get Financial Loss and Incident Protection, your customer can enroll for the Membership in a number of different ways at the point of sale when purchasing their vehicle.  

FLIP Membership can be purchased at the dealership with a one-time, lump-sum payment, or the cost of the Membership can be rolled into your customer’s loan or lease payments for the vehicle.  

Including the cost of our FLIP Membership into your customer’s vehicle loan or lease spreads the payments out over time, rather than paying one big sum upfront. This can be beneficial for some customers’ financial needs. It is important to note that if FLIP Membership coverage is added to the customer’s loan, they will also be paying interest on the FLIP Membership. 

The FLIP Membership is entirely refundable within the first 30 days. After that, it depends upon the terms and conditions.