Frequently Asked Questions
What is GAP Coverage?
Any and all vehicle prices continue to increase. At the same time, many borrowers want longer loan terms and are making smaller down payments. For these reasons it’s typical for a vehicle’s outstanding loan balance to be significantly higher than its actual cash value, especially during the first few years of the loan. If your vehicle is totaled or stolen, your insurance settlement will be based on the vehicle’s actual cash value, not the outstanding loan balance. This may create a deficiency balance or “gap.” You could be stuck paying hundreds – or even thousands – of dollars out of your own pocket to pay off the deficiency balance. Learn more about GAP protection with our English version GAP brochure or Spanish version GAP brochure.
Contact the credit union today to protect your vehicle or motorcycle investment with Guaranteed Asset Protection (GAP). GAP is designed to eliminate your unpaid net loan/lease balance in the event your vehicle is stolen or damaged beyond repair (totaled).