GAP stands for “Guaranteed Auto Protection”
Ask yourself this question: “Will my insurance company pay off my loan if my vehicle is totaled?”
The answer is that most people believe that if their vehicle is totaled or stolen, their primary insurance will pay off their loan balance. Well, think again!
If your vehicle is totaled or stolen, your primary insurance carrier will usually pay only the actual cash value (current market value) of your vehicle, less your deductible. This amount could be substantially lower than your loan balance.
The final result is a financial GAP where you must pay the difference between your loan balance and your insurance settlement, which could mean thousands of dollars out of your pocket.
That’s why many owners have chosen GAP. GAP coverage eliminates the out-of-pocket expense you would incur to pay off your loan in full should your vehicle be stolen or totaled.
What are your chances of having a “GAP?”
- Chances are pretty good you’ll have a GAP, especially if you have a 48-month or longer term loan, put less than 20% down, financed accessories, and/or add-ons into your loan.
- The Insurance Information Institute estimates that one vehicle is stolen in the United States every 25 seconds.
- Insurance companies report that every year, a half million vehicles are written off as a total loss due to accident, fire and theft.
Why Buy GAP Protection?
- It pays off your remaining loan balance should your automobile be stolen or damaged and is declared a total loss.
- It clears your loan balance, thus allowing you to start fresh with a new vehicle purchase.
- It can be included as a small addition to your monthly payment.
How much does it cost?
- You can purchase a GAP Policy through AOD Federal Credit Union for only $285! It pays for itself, especially if your deductible is higher than that.
Can I purchase GAP on other vehicles, other than an automobile?
- Yes, but some limitations and exclusions do apply. Ask your credit union representative for more details.
GAP is a very small investment, considering the measurable benefits it offers!