State Farm Bank® deposit accounts are FDIC insured.

When Your Car Is Totaled, Payoff Protector® May Help You Avoid Making Payments on a Vehicle You No Longer Own

You expect your insurance to cover your vehicle after a fender bender. But what happens if your car is totaled or stolen? Payoff Protector®footnote[1], included with every vehicle loan from State Farm Bank, may provide you with financial protection if your car is ever totaled or stolen and the insurance settlement amount does not cover the outstanding principal balance due on your loan.

Apply for a Vehicle Loan

How does it work?

With Payoff Protector, the difference between the amount your auto insurance pays on a total loss claim and the outstanding principal balance due on your loan is canceled, subject to certain restrictions.footnote[1]

Some Benefits of Payoff Protector Include:

  • You may save money because you won't have to purchase Guaranteed Asset Protection (GAP Insurance) through a third party.
  • You minimize the risk of needing to roll the unpaid balance of the existing loan into the financing of a replacement vehicle loan.
  • Payoff Protector covers all insured vehicles that are financed by and collateral for a State Farm Bank vehicle loan.
  • Auto insurance does not have to be provided by a State Farm® insurance company in order to be eligible for Payoff Protector.
  • All applicants must be at least 18 years of age. The lending policy of State Farm Bank permits financing only to persons who are at least 18.
  • The individual(s) on the application must have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

What happens if I have a total loss?

Auto accident involving two cars

Step 1: Total Loss Declared

Cropped view of businessman signing contract

Step 2: The Payoff Protector Calculation

Upon receipt of the insurance settlement check, State Farm Bank requests from you a copy of the Claim Settlement Report in order to complete the Payoff Protector calculation.

Young woman sitting in new car with key in showroom

Step 3: The Settlement

After we receive the Claim Settlement Report, State Farm Bank then responds with a letter detailing the covered amount. Without Payoff Protector, you would have owed the remaining unpaid principal balance.


return to reference[1]State Farm Bank Payoff Protector is automatically included as a provision of all newly issued vehicle loan promissory notes. Payoff Protector is not an insurance product. Subject to the terms, conditions, and restrictions of the Payoff Protector provision in your State Farm Bank Promissory Note and Security Agreement. Your loan must be in good standing in order for Payoff Protector to apply. If your vehicle is determined to be a total loss before the loan is paid off, State Farm Bank will cancel the difference between the insurance payout and the unpaid principal balance due on the loan. Please contact State Farm Bank for additional details.

Payoff Protector does not waive past due payment amounts; interest, fees and charges incurred prior to the total loss; or any refundable portion of the credit insurance premium. Certain exclusions apply to Payoff Protector, including but not limited to, if your account is 30 days or more past due, pre-existing vehicle damage, or other amounts excluded from your vehicle insurance coverage.

State Farm Bank, F.S.B., Bloomington, Illinois ("Bank"), is a Member FDIC and Equal Housing Lender. NMLS ID 139716. The other products offered by affiliate companies of State Farm Bank are not FDIC insured, not a State Farm Bank obligation or guaranteed by State Farm Bank, and may be subject to investment risk, including possible loss of principal invested. The Bank encourages any interested individual(s) to submit an application for any product(s) offered by the Bank. We also encourage you to obtain information regarding the Bank's underwriting standards for each type of credit or service offered by visiting® or by contacting the Bank at 877-SF4-VISA (877-734-8472). If you are deaf, hard of hearing, or do not use your voice to communicate, you may contact us via 711 or other relay services. To apply for a Bank product, you may also see your participating State Farm agent.

Federal Deposit Insurance Corporation Logo
Equal Housing Lender Logo