YOUR AUTO INSURANCE
DOES NOT COVER EVERYTHING
In the event
your vehicle is deemed a total loss due to an accident or theft, your
auto insurance policy will usually cover only the actual cash value
or market value of your vehicle less a deductible. This settlement
could be significantly less than the amount you owe to your lender
or leasing company. The final result is a financial GAP where you
must make up the difference, which could mean thousands of dollars
out of your pocket.
PROTECTION THROUGH
GUARANTEED AUTO PROTECTION PLUS
Guaranteed Auto Protection Plus Protects
individuals
| Guaranteed
Auto Protection Plus is
a loan/lease deficiency waiver and is not offered as insurance
coverage. |
who finance a new or used vehicle from
the financial GAP.
In the current market, during
the first few years that you own your vehicle, your loan/lease balance
can be higher than the actual value of your vehicle, as
a result of depreciation. As your vehicle's value declines, your loan/lease
balance may decline more slowly, resulting in a financial gap. If
your vehicle were stolen or totaled in an accident, you would be liable
to pay the difference between your insurance settlement and your outstanding
loan/lease balance.
| The
purchase of Guaranteed
Auto Protection Plus is
voluntary and cannot be required as a condition of credit approval. |
Guaranteed Auto Protection Plus
covers the difference
between the actual cash value of your
vehicle and the loan/lease balance,
less delinquent payments, late charges, refundable service warranty
contracts and other insurance-related charges.
Guaranteed Auto Protection Plus will even cover your
auto insurance deductible of $500 or $1,000.
The actual amount depends on your credit union's program limits. Ask
your lender/loan officer for details.
GAP Auto Insurance is administered by a third
parity provider. Please see our privacy
policy for additional information on services offered by third
parties.
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