When shopping for a vehicle, consider GAP coverage. GAP or Guaranteed Asset Protection is a supplement to your primary auto insurance. If you are financing more than the value of the collateral or close to the value, then GAP coverage may be right for you. GAP coverage will cover the balance on your loan that remains after your insurance company pays their portion of the claim.
Insurance settlements do not always cover your loss. Unfortunately, many are unaware their primary auto insurance does not adequately protect their vehicle. Putting less than 20% down on a new vehicle purchase means you may be "upside down" on your loan-to-value ratio for the next two to three years. Even if you put money down on your vehicle, it can depreciate by thousands of dollars just by driving it off the lot. Your primary auto insurance covers your vehicle at its assessed value.
You could be responsible for paying the difference between your primary insurance settlement (vehicle’s actual cash value) and your loan balance if your vehicle is stolen, accidentally damaged beyond repair, or declared a total loss.
This could add up to thousands of dollars out of your pocket. You could end up paying on a vehicle you no longer drive, plus you still have to purchase a new vehicle.
Protection that pays the difference
MEMBERS CHOICE Guaranteed Asset Protection Plus (GAP Plus)* helps ease your financial burden by paying the potentially high-cost difference between your insurance settlement and your loan balance on items directly related to the purchase of your vehicle. Plus it includes $1,000 toward your down payment on a replacement vehicle when financed by Lebanon Federal Credit Union within 60 days after your primary insurance company issues a settlement check.
Features of MEMBERS CHOICE Guaranteed Asset Protection Plus
90-day free look you may cancel your protection within 90 days of your enrollment date and receive a full refund and no cancellation fee.
Available on loans protects new and used vehicles.