GAP Protection
Protect Yourself with Guaranteed Asset Protection
Now available from Innovations FCU for a fraction of what you would pay at the dealer!
Guaranteed Asset Protection protects individuals who finance a new or used vehicle from the financial GAP.
During the first few years that you own your vehicle, your loan balance can be higher than the actual value of your vehicle, as a result of depreciation. As your vehicle's value declines, your loan balance may decline more slowly resulting in a financial gap. If your vehicle were stolen or totaled in an accident, you would be liable to pay the difference between your insurance settlement and your outstanding loan balance.
Guaranteed Asset Protection covers the difference between the actual cash value of your vehicle and the loan balance as of date of loss, less delinquent payments, late charges, accrued interest, refundable service warranty contracts and other related charges.
Guaranteed Asset Protection will also cover the actual deductible amount stated in your primary insurance policy up to $500 in the event of a covered GAP claim.
Your Auto Insurance Does Not Cover Everything
GAP pays the difference between what you owe and what your insurance company will pay.
In the event your vehicle is deemed a total loss due to an accident or theft, your auto insurance policy will usually only cover the actual cash value or market value of your vehicle less a deductible. This settlement could be significantly less than the amount you owe to your lender. The final result is a financial GAP where you must make up the difference, which could mean thousands of dollars out of your pocket.
This example is for illustrative purposes only and not based on your individual loan.
| Financial Variable | Amount |
|---|---|
| Loan Balance After One Year | $16,000 |
| Your Vehicle's Actual Cash Value | $11,000 |
| Your Auto Insurance Deductible | $500 |
| Your Auto Insurance Settlement | $10,500 |
| Your Financial GAP | $5,500 |
| Guaranteed Asset Protection Pays | $5,500 |