GAP Might Be the Answer to A New Vehicle!
GAP Insurance: General Asset Protection (GAP) Insurance covers a lender for the difference between the value of an asset (a car) and the value of the a loan. The borrower pays the premium.
If your vehicle is totaled, the value that your insurance company places on your vehicle may be substantially less than its actual retail value or the amount you owe on your loan. If you add your deductible payment to this amount, you could be left owing thousands of dollars. Obviously, this is not an ideal situation for anyone. Thankfully, Section 705 FCU has a solution for you.
GAP protection takes care of the difference between the insurance settlement and the loan payoff if there is a deficiency balance left over. Coverage is available on new or used automobiles, motorcycles, watercraft, ATV’s, and travel trailers. The protection covers the original loan amount up to the value lost due to theft, collision, fire or any other insured peril.
In essence, GAP protection is your “Peace of Mind” policy. Knowing that you will not be responsible for any deficiency balance or deductible while having to replace your lost vehicle should be a main concern to push you in the direction of choosing GAP protection plan.
To receive this valuable protection, simply pay an affordable one-time fee, which can also be financed with your vehicle purchase.
For more information or to purchase GAP protection, feel free to contact us today!
Posted in: Loan Insurance