GAP is Peace of Mind!
Your NEW car becomes a USED car as soon as you drive it off the lot! If the value of your car is less than the balance of your auto loan, you’re “upside down,” and there is a gap that isn’t covered by standard auto insurance. This difference requires a special type of protection called GAP coverage.
If your vehicle is ever totaled or stolen, your primary insurance will usually pay only the current market value of your vehicle, less your deductible. If the actual cash value is less than your current loan amount, the result could be a financial gap where you must pay the difference between your loan balance and your insurance settlement. This could mean thousands of dollars out of your pocket.
Do you need GAP protection?
A car starts depreciating as soon as you buy it, but never more than when you drive it off the lot – turning it from a “new” car to “used” car. To estimate the anticipated depreciation and the potential GAP risk, please contact your credit union representative and ask to receive a GAP Risk Illustration through the VisualGAP system.
How GAP Coverage works:
Amount you owe on your auto loan: $20,000
Your car’s “actual cash value” at the time of loss: $15,000
What insurance company pays after deductible: $14,500
GAP helps waive: $5,500
*Discounts Provided by 3rd party companies and are subject to change at any time without notice.
Disclaimer: Insurance, Warranty, and Service Contract products are not products of the Credit Union; and are not obligations of or guaranteed by the Credit Union. Insurance or warranties may be purchased from an agent or an insurance company of the Member’s choice; and Credit Union makes no representations as to the services of any provider.