GAP – GUARANTEED AUTO PROTECTION – helps cover the “gap” between the actual cash value of a vehicle and the outstanding loan balance of that vehicle.
GAP provides security and protection.
GAP provides security – in the event your auto is stolen or damaged beyond repair, this insurance may help pay the difference between your insurance settlement and the loan balance with us.
GAP provides protection – protect your credit rating in the event of the loss of your vehicle.
Why do I need GAP when I have full coverage insurance on my vehicle?
Quite often the actual cash value of a vehicle involved in a total loss is less than the outstanding loan or lease balance at the time of loss. GAP coverage helps pay the lender, or lessor, the difference between the actual loan balance and the payment from the borrower’s primary insurance carrier. Most people, because they’ve never experienced it, don’t understand their insurance carrier may settle for an amount less than the loan balance when a car has been totaled in an accident or stolen. The remaining loan balance after your insurance payment is still a debt owed. In these situations, you very well could end up with two car payments, assuming you’ve purchased a replacement car, without GAP coverage.
Information about our GAP coverage:
Stop by your favorite Fremont Federal Credit Union office for more information or call 419-334-4434.
