The credit union offers GAP (Guaranteed Asset Protection) Coverage on new
and used vehicle loans for a flat fee of $135. GAP Coverage is a debt
cancellation product that covers the difference between the insurance
settlement amount and the outstanding loan balance if your vehicle is
involved in a total loss claim, as determined by your auto insurance
provider, due to an "at fault" or "not at fault" accident, theft or flood.
If your vehicle is totaled, the insurance settlement is based on the
actual cash value of the vehicle not the outstanding loan balance. This
difference could create a "gap" (money you still owe on the loan) after
the primary insurance settlement has been paid. With GAP Coverage, this
deficiency would be covered up to specific parameters.
Specifications
Eligible for new and used cars, light trucks, vans and SUVs
1 Based on MSRP or NADA Average Retail Value
2 Existing loans not eligible unless refinanced
3 During the "free look" period, coverage may be cancelled for a full refund. The refund will be applied to the outstanding loan balance.
