Protect Against a Deficiency Balance
If a vehicle is totaled or stolen, the primary insurance policy will usually cover only the depreciated value of the vehicle. Likely, for loans with a high LTV ratio, the insurance settlement will not cover the vehicle’s entire loan payoff – creating what can be a significant balance or “GAP” – and your member is responsible for paying the difference.
We Will Cover the GAP
Guaranteed asset protection (GAP) is a deficiency balance waiver designed to eliminate your members’ unpaid net balance in the event that their vehicle is stolen or damaged beyond repair. GAP relieves your member of the responsibility for the deficiency balance not covered by the primary insurance policy, subject to program terms.
Advantages of GAP Include:
options can be tailored to meet your members’ specific needs.
Increase fee income
GAP sales provide a great source of fee income.
Cover your collateral
Cover many types of collateral, including passenger automobiles, trucks, motorcycles, ATVs, watercraft, and recreational vehicles.
Administration is easy through your choice of enrollment and reporting methods.
125% and 150% covers the insurance deductible.
Coverage options for $500 and $1,000 deductibles.
If your member totals their vehicle and it was financed through your credit union, we will pay $1,000 towards their loan.
Skipping a loan payment can be an easy and convenient way to give your members a little extra cash.
96 months or more.