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.
Guaranteed Asset Protection is not NCUA insured.
Private passenger autos, vans and light trucks (one ton load capacity and under) that are not used for commercial use.
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. Auto deductible protects you on accidents not resulting in a total loss. Here is an example:
|You are NOT out of pocket thousands of dollars|
|Date of Loss:||36 months|
|GAP (Guaranteed Asset Protection)||($3,500)|
|Payment to Lender||$4,000|
|Out-of-pocket Expense with GAP coverage||$0.00|
*Actual Cash Value of Vehicle