What is GAP Insurance?
Guaranteed Asset Protection, or GAP Insurance, can be a lifesaver for any vehicle owner. It’s a way to help protect your vehicle loan. Often times primary auto insurance settlements don’t pay off your loan balance. When you buy a new or used vehicle, there’s no way to predict if it will be stolen or totaled in an accident. With GAP Insurance, you’re protecting your vehicle investment against a possible financial loss.
How Does It Work?
The fee can be included with your monthly payments or made separately by cash, check, charge or possibly electronic funds transfer. If there’s a difference between what you owe on your loan and the value of your vehicle, GAP Insurance will help pay the difference based on the terms of your member agreement. You can cancel within 90 days for a full refund.
Why Is It Valuable?
New and used vehicles often depreciate quickly and vehicle loans are typically getting longer in terms. There may be a point where you owe more than it’s worth. That’s where GAP Insurance kicks in. It will help cancel the difference between the primary insurance settlement and what you may still owe. In addition, if your vehicle is stolen or totaled in an accident, it will cancel $1,000 of your next loan with your credit union when you purchase a replacement vehicle within 60 days of your primary insurance settlement. 1A offers affordable GAP coverage to protect our members from unexpected and substantial out-of pocket expenses. Have questions or ready to apply? Call 757-886-3337 during business hours and get started today!
GAP Insurance plan coverage as of 4/20/2010
| Motor Vehicle* | Powersport** | |
| Maximum benefit | $50,000 | $50,000 |
| Maximum loan/lease-to-value |
125% | 125% |
| Maximum loan/lease term | 84 months | 84 months |
| Maximum loan/lease amount | $100,000 | $100,000 |
*Motor Vehicle: Private passenger cars, vans, and light trucks less than 10,000 GVW for commercial or personal use.
**Powersport: Motorcycle, ATV, snowmobile, or personal watercraft for personal use.
