Pays the difference between the actual cash value (ACV), established by the primary casualty insurance carrier, and the principal amount or lease deficiency. GAP also covers up to $1,000 of the borrower’s deductible. The deductible benefit is not available for lenders domiciled in certain states.
Advantage and Plus includes the standard features in addition to providing members with replacement vehicle assistance of $1,000. With Advantage, if the borrower’s primary insurance settlement pays off the loan balance in full, the borrower is still eligible for this benefit. This amount can be used to reduce the amount of the new loan when financing or leasing a replacement vehicle at the same credit union. Coverage is not available in all states.
How Do I Get GAP Protection?
GAP is available for a nominal cost and may be purchased anytime during the loan term. However, it is generally not recommended after 18 months into the loan. Ask your loan representative for details.
* This could be the out-of-pocket amount you would pay if your vehicle is stolen or damaged beyond repair. The deductible benefit is covered as part of the deficiency balance and is not paid directly to the borrower.
**Limitation of Protection: The information reflected in the graph is provided for illustrative purposes only. The actual payoff relative to value of a particular vehicle may vary.
*** Availability of GAP plans and deductibles may vary by state.