Make your coverage count
Vehicle insurance that fills in the GAPContact Us
Why Purchase GAP?
If something happens to your vehicle, normal insurance will cover it, right? Well, mostly right. Unfortunately, almost all car insurance only covers the value of your car itself, and not what you owe on your auto loan. If there’s a difference between the two, you could be out thousands of dollars. That’s where Guaranteed Asset Protection insurance, or GAP insurance, comes in. If your vehicle is stolen or totaled, it covers any “gap” between the two so your hard-earned assets stay protected.
Handle everything in one place: add on to any AFFCU vehicle loan
Can cover motorcycles, boats, RVs, and regular vehicles
Flexibility: terms up to 72 months
How Does it Work?
Protect your vehicle investment, not just its value.
You could lose more than your new or used vehicle if it is lost or stolen or involved in a major accident. You could lose your investment. Because most insurance policies only cover the value of your vehicle – something that rapidly declines during the first few years of ownership – your loan balance can be higher than the value of your vehicle.
Now you can protect your vehicle investment with Guaranteed Asset Protection (GAP). GAP protects you from a potential loan deficiency and covers the “gap” between the value of your investment and the amount you still owe. When you add GAP, the difference may be covered to protect your investment and cover you from substantial loss.
How does it work?
Here’s an example. Let’s say your car is stolen and not recovered until one year into your loan:
Original purchase price = $18,000
Loan balance after one year = $14,000
Vehicle’s value determine by insurance = $12,000
Less the deductible = $1,0001
Insurance settlement amount = $11,000
Your lost investment without GAP = $3,000 – your remaining unpaid loan balance.
With GAP, you have the opportunity to protect yourself and your investment.
What does GAP cover?
GAP was designed for all drivers, whether you finance a new or used vehicle. It covers automobiles, vans and light trucks. GAP coverage goes into effect when you need it most – when your vehicle is stolen and isn’t recovered, or is totaled in an accident.
GAP may cover the difference between your primary insurance company Actual Cash Value determination and the payoff of your loan plus up to $1,000 of your insurance deductible 1. Delinquent payments, late charges, refundable service warranty contracts, other insurance-related products, and interest charged after the date of loss will be deducted from the GAP settlement.
For more details, visit any branch office or call 210-673-5610 or toll-free at 800-227-5328.
1 GAP and deductible reimbursement benefits are available in most, but not all states. Please consult your loan officer or representative for the availability of this important benefit.