about gAP
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.
about gap
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:
Flexible Coverage
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.
Easy administration
reporting
Administration is easy through your choice of enrollment and reporting methods.
LTV ratio
125% and 150% covers the insurance deductible.
Multiple deductible
options
Coverage options for $500 and $1,000 deductibles.
Vehicle replacement
benefit
If your member totals their vehicle and it was financed through your credit union, we will pay $1,000 towards their loan.
Skip-a-pay
Skipping a loan payment can be an easy and convenient way to give your members a little extra cash.
Flexible terms
96 months or more.