Guaranteed Asset Protection (GAP) Coverage6
GAP also known is Guaranteed Asset Protection is a voluntary, non-insurance product offered by the credit union that may help cover costs that typical car insurance can’t. It is an optional plan designed to waive the remaining loan balance not covered by an insurance settlement in the event of a total loss or unrecovered theft. GAP Plus also provides you with a $1,000 credit towards the financing of a replacement vehicle financed with the credit union.
You may want to consider GAP if
- Your loan had a low down payment
- You drive frequently (more than 15,000 miles a year)
- You purchase an auto model that depreciates rapidly
How Much Does GAP Cost?
For new and eligible used vehicles, we charge a flat enrollment fee of $499. We allow you to pay for it in a lump sum or finance it into your loan (would increase the overall cost of the loan).
How does GAP work?
In some cases, the actual cash value of your vehicle (determined by your insurance company) could be less than your actual loan balance. In the unlikely event of a total loss or theft, GAP waives the difference between your outstanding loan balance, and the actual cash value up to the maximum LTV%. Additionally, GAP may reduce your next auto loan financed at the credit union by up to $1,000.
- Remaining Loan Balance $20,000
- Insurance Settlement $17,000
- Amount GAP covers $3,000