Credit Life and Disability Involuntary Unemployment Ins Guaranteed Auto Protection
Collateral Protection and Vehicle Single Interest Ins
Extended Automobile Warranties Dent Guard Annual Golf Gathering
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What
is GAP Coverage? Guaranteed Auto Protection, or GAP, offers protection against financial liability for members who finance a new or used vehicle.GAP covers the difference between the market value of the vehicle and the loan balance in the event that the members vehicle is damaged beyond repair (totaled) or stolen and never recovered. With GAP, the covered deficiency balance is then waived.Example: Member purchases a vehicle for $24,000, after one year the balance of
the vehicle loan is $20,000. The vehicle is totaled in an accident and the
primary insurance company pays the “actual cash value” of the vehicle,
$18,000. That leaves a gap of $2,000 that the member is responsible to pay to
the credit union. GAP Coverage pays the remaining balance, leaving the member NO
DEBT to the credit union. * This is a must buy for any member financing over 95% LTV, as they will be in a negative equity situation for 36 to 42 months.
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