Guaranteed Asset Protection Insurance (GAP)
This insurance is designed to protect you when a gap exists between the actual value of your vehicle and the amount of money you owe on your loan.
Initially, your loan balance will possibly exceed the value of the vehicle you have financed. This is especially true if you use a small down payment or are not required to make a down payment at the time of purchase.
If your vehicle is stolen or totaled in an accident, your auto insurance company will cover only the replacement value of the vehicle. The remainder of the loan balance becomes your responsibility to pay and the replacement value is not always enough to cover the balance of the loan. GAP is designed to cover that difference.
Benefits of GAP protection are:
- Protection from financial loss
- Protection of your credit rating
- Protection for the term of loan (up to 72 months)
- Coverage for auto insurance deductibles
- Benefits for new or used vehicles, including cars, light trucks, motorcycles and some other motorized vehicles
- It gives you peace of mind that you are covered in case of loss
*Certain exclusions may apply. This product is provided to members through other independent companies for the benefit of Baylands FCU members. This product is not federally insured, are not obligations of the Credit Union, and are not guaranteed by the Credit Union or any affiliated entity.
