Gap Insurance
GAP (Guaranteed Asset Protection) Insurance* For New or Used Vehicle Loans
Guaranteed Asset Protection (GAP) Insurance
- Optional insurance protection for new or used vehicle loans
- Covers the difference in the balance on a car loan and its declared value, as determined by your primary insurance carrier, in the event that it is damaged beyond repair or stolen and never recovered.
- GAP is supplemental coverage and does not replace your standard Comprehensive, Collision and Liability coverage, only enhances it.
Why get GAP? No matter how terrific a car is, the minute you drive it out of the show room, its value decreases. Depending on where you live and how much you financed, the established market value may be less than the actual balance you owe on your car. With GAP, if your car is totaled or stolen, the deficiency will be covered. That includes the difference between your primary carrier's insurance settlement and the payoff of your loan, less delinquent payments, late charges, refundable service warranties, and other insurance related charges. Included in the GAP payment is your primary insurance deductible, which is covered up to $1,000 if a deficiency exists. In addition, you are eligible for an additional $1,000 towards the purchase of a replacement vehicle financed through the credit union.
Consider: You buy a car. The loan balance after one year is $15,000. The market value is $11,000. Your insurance deductible is $1,000. You total the car, and your insurance company pays $10,000. That leaves a difference of $5,000. That is $5,000 you would have to pay for a car you no longer possess. With GAP, that $5,000 is paid.
The one-time charge for GAP is $227 per vehicle.
*Insurance products sold through or in the credit union are not insured by the National Credit Union Administration (NCUA), and are not issued, guaranteed, or underwritten by the credit union or the NCUA or any other federal government agency. There is no requirement or obligation to purchase insurance from the credit union or any subsidiary, affiliate, or particular unaffiliated third party as a condition to obtaining a loan, and a decision as to insurance agents will not affect the credit terms in any way. The credit union may not condition an extension of credit on an agreement not to obtain, or a prohibition on the applicant from obtaining an insurance product or annuity from an unaffiliated entity.
Your
savings federally insured to at least $250,000 and backed by the full faith
and credit of the United States Government
We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.