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GAP Coverage

Guaranteed Asset Protection (GAP) Advantage

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“GAP” is the deficiency balance between your outstanding loan balance and the actual cash value of the vehicle.

Guaranteed Asset Protection Advantage (also known as “GAP”) was designed to relieve you of the remaining loan balance that your primary insurance carrier doesn’t cover in case your vehicle is stolen or totaled in an accident and can’t be repaired. “GAP” is not insurance but a one time fee that can be added to your loan that cost’s less than $9 per month. The value of your vehicle rapidly declines once it’s driven off the lot; that should give you peace of mind knowing that your investment is covered in case anything would happen.

Features of GAP include:

  • Coverage for the term of a loan, up to 72 months.
  • Coverage for vehicles valued up to $100,000 at time of purchase.
  • Payment of benefits up to $50,000.
  • Coverage deductibles up to $1,000.
  • Benefits for new or used vehicles, including cars, light trucks, motorcycles and some other motorized vehicles.
  • $1,000 down payment credit toward a replacement vehicle. *
  • Fully refundable in the first 60 days.

The following is a typical example of how GAP Advantage could work for you:

Insurance Settlement
Vehicle (Actual Cash Value) $16,000
Insurance Deductible $1,000
Insurance Settlement $15,000
Loan Settlement
Original Purchase Price $23,000
Outstanding Loan Balance $19,000
Insurance Settlement $15,000
Deficiency Balance $4,000
GAP Coverage Amount
Including the $1,000 credit toward replacement vehicle

* The $1,000 replacement credit is given only if the replacement vehicle is financed through ACU. For complete details contact a loan officer at any of our credit union locations.