St. Cloud Federal Credit Union provides an additional service for members who apply for loans to purchase cars, motorcycles, RVs and boats.
GAP -- Guaranteed Asset Protection -- is an affordable way to protect your new purchase if it is stolen or involved in a major accident. In effect, it fills the gap that may exist in regular insurance coverage.
Most insurance policies cover only the value of your vehicle -- which can rapidly decline during the first few years of ownership. Your loan balance could be higher than the value of your vehicle.
GAP coverage is referred to as a loan deficiency waiver that covers this "gap" between your vehicle's value and the amount you still owe. GAP protects you from possible substantial loss.
GAP covers the difference between your primary carrier's insurance settlement and the amount of your loan, less delinquent payments, late charges, refundable service warranty contracts, and other insurance-related charges. Included in this difference is your insurance deductible, which is limited to $1,000.
|Original purchase price||
|Loan balance after one year||
|Vehicle's current value, per your insurance company||
GAP pays the difference toward the refinancing of a replacement vehicle, including your deductible, up to $1,000. Your Total GAP Benefit in this example: