Are you protected with GAP?

Did you know?

• 1 in 5 accidents result in a total loss.
• Your new car becomes a used car as soon as you drive it off the lot.
• From a dealer, the moment you drive your car off the lot, it depreciates about 20% on average.
• Vehicle values decline about 15% in value every year.
• Even if you are a safe driver, accidents happen. (You never know when your car is going to start on fire.)

You’ve heard it plenty of times - a new car depreciates about 20% in value once you drive it off the lot.

No big deal, right?

Think again. Let’s pretend you total your car the second month into owning it.

The car you bought for $25,000 is now only valued at $20,000 according to the insurance company. And that’s all they’re paying.

How do you cover that extra $5,000? That’s where GAP (Guaranteed Asset Protection) comes in.

GAP is a product that helps cover the difference between the insurance payout of a total loss, and the outstanding loan balance at the time of loss, up to 150% of the value. GAP also applies to stolen vehicles.

Insurance companies may determine the value of the vehicle using the actual cash value at the time of loss, shown in our example above.

If you owe more than the actual cash value, the insurance companies are not guaranteed to pay off your loan. You are still responsible for that remaining balance.

This results in you paying a large amount of money after the insurance company pays their share.

Stay protected with GAP from Integra First Federal Credit Union. We offer GAP for both auto and recreational vehicles, whether you have a new or existing loan.

Ask our loan officers about GAP before the accident happens! Contact our team at (833) 694-6834. 

*This is general information only. GAP is not insured by NCUA. It is not underwritten, issued, or guaranteed by NCUA or any other federal government agency. GAP is optional and there is no requirement to purchase it as a condition of a loan. Whether you decide to purchase GAP or not will not affect your application for credit or the terms of any credit agreement you have with us. If you purchase GAP, adding the fee to your loan will increase the cost. Please refer to your actual GAP Waiver Addendum for terms, conditions, coverage, limitations, and restrictions. GAP is not an insurance policy and does not replace or eliminate the need for vehicle insurance coverage. There are exclusions and limitations for items like delinquent payments, late charges, refundable items, and financing more than the allowable Loan to Value (LTV%) limit that could leave you responsible for a loan balance after the GAP benefit is applied to your loan. You may cancel GAP during the first 60 days and receive a full refund of any fee paid. GAP is non-refundable in most states after the first 60 days.