GAP Insurance
Guaranteed Auto Protection (GAP) insurance will help cover the difference between your loan payoff and your primary insurance company settlement.

 DO YOU NEED GAP-INSURANCE?
More people with good credit are financing higher amounts on their car loans than ever before with little or no down payment.  If you can answer yes to two or more of the following statements, you may need Gap Insurance in the event that your vehicle is declared a total loss as a result of theft, collision, flood or other natural disaster.
  • You financed more than 70 % of the dealer cost or ACV of the car.
  • Your down payment was less than 30% of the vehicle purchase price.
  • Your vehicle is financed for 24 months or longer.
  • You drive over 12,000 miles per year.
HOW DOES GAP-INSURANCE WORK?
If your automobile or truck is stolen or declared totaled, your auto insurance company will usually only pay you the actual cash value of your car. The actual cash value can be a lot different from what you still owe on your loan. Without GAP insurance your
lender will hold you responsible for paying the difference between the actual cash value and the amount left on the loan. This might mean you having to come up with thousands of dollars to pay that debt. GAP insurance will help eliminate you
having to pay the difference and eliminate the stress of having to come up with the difference.
 
The following is an example of how gap insurance works:
Your Net Loan Balance at Time of Total Loss                $25,500
            Actual Cash Value of Your Vehicle                   $20,000          
Your Insurance Deductible                               $     500 
Your Net Auto Insurance Settlement                 $19,500
The “Gap” You Owe - Paid by GAP Insurance                $  6,000
 
Leased vehicles are not eligible at this time.

Gap Insurance is available in all states except: CT, LA, NH, NM, NY, VA, VT, WA
 
Please do not hesitate to contact the Credit Union should you have any questions or concerns regarding our insurance products.