GAP Insurance
What is Guaranteed Asset Protection?
GAP is program that we offer for your new or used vehicle loan. This financial protection covers the difference in the balance on a car and its declared value, as determined by your primary insurance carrier, in the event that it is damaged beyond repair or stolen and never recovered. GAP is a supplemental coverage that enhances, rather than replaces, your standard comprehensive, collision, or liability coverage.
Benefits of GAP Insurance:
- GAP is inexpensive.
- Filing a claim is quick and easy.
- Enrollment is easy and coverage begins immediately.
- Coverage is offered for a variety of vehicle types, new and used.
- Up to $1,000 of your insurance deductible is covered, as part of the deficiency balance.
How GAP Works:
GAP will waive the difference between what the insurance company paid (ACV-actual cash value) and the loan amount, if the loan amount is higher.
Insurance Settlement
Vehicle ACV $11,000
Deductible $500
Insurance Settlement $10,500
Loan Settlement
Outstanding Loan Balance $15,000
Insurance Settlement $10,500
Loan Balance After Insurance Settlement $4,500
In this example, GAP will pay $4,500 to cover the remaining loan balance deficiency.
Insurance products are not insured by NCUA or any Federal Government Agency; are not a deposit of or guaranteed by the Credit Union or any Credit Union Affiliate; and may lose value. Any insurance required as a condition of the extension of credit by Miami Firefighters Federal Credit Union need not be purchased from our Agency but may, without affecting the approval of the application for an extension of credit, be purchased from an agent or insurance company of the customer’s choice.
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