Guaranteed Asset Protection (GAP) protects
you against financial loss in the event your vehicle is damaged
beyond repair (totaled) or stolen and never recovered.
Since a vehicle's value declines as a result
of depreciation, the loan balance can be higher than its Actual
Cash Value (ACV). Without GAP coverage, you would be responsible
for paying the difference between the insurance settlement and
the outstanding loan balance. With the purchase of GAP, the deficiency
balance may be waived.
Benefits
- Protects your credit rating
- Eliminates or reduces "out of pocket"
expenses for the remaining loan balance after loss settlement
- You are able to purchase a replacement
vehicle sooner because there is little or no carry-over balance
- Pays benefits up to $50,000
- You may purchase up to 1 year from effective
date of loan
- Available at reduced amount compared
to the dealer's GAP
- Waiver may be fully refunded within 60
days of its inception if no GAP benefits have been paid
- Peace of mind
Eligible Collateral & Rates
Private passenger autos, vans and light trucks
(one ton load capacity and under) that are not used for commercial
use.
$250 Rate to Member
GAP covers the difference between the net
payoff of the Lease/Loan contract and the ACV of the vehicle as
determined by the primary insurance company. Here is an example:
|
You are NOT
out of pocket thousands of dollars
|
| Loan Amount: |
$24,000 |
| Term: |
72 months |
| Date of Loss: |
36 months |
| . |
. |
| Loan/Lease Payoff: |
$12,000 |
| Insurance Settlement*: |
$8,500 |
| GAP |
($3,500) |
| Insurance Deductible |
($500) |
| . |
. |
| Payment to Lender |
$4,000 |
| Out-of-pocket Expense
with GAP coverage |
$0.00 |
| *Actual Cash Value of
Vehicle |
|
You too can purchase GAP coverage from your
Credit Union for your auto, motorcycle, boat or RV. Call (210)
442-0199 for additional details today
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