AUTO INSURANCE DOES NOT COVER EVERYTHING
In the event
your vehicle is deemed a total loss due to an accident or theft,
your auto insurance policy will usually cover only the actual cash
value or market value of your vehicle less a deductible. This settlement
could be significantly less than the amount you owe to your lender
or leasing company. The final result is a financial GAP where you
must make up the difference, which could mean thousands of dollars
out of your pocket.
PROTECTION THROUGH GUARANTEED AUTO
Protection Plus protects individuals who finance a new or used vehicle
from the financial GAP.
the current market, during the first few years that you own
Auto Protection Plus is a loan/lease deficiency waiver
and is not offered as insurance coverage.
your loan/lease balance can be higher than the
actual value of your vehicle, as a result of depreciation. As your
vehicle's value declines, your loan/lease balance may decline
resulting in a financial gap.
If your vehicle were stolen or totaled in an accident, you would
be liable to pay the difference between your insurance settlement
and your outstanding loan/lease balance.
Auto Protection Plus covers the difference between
the actual cash value of your vehicle and the loan/lease balance,
less delinquent payments, late charges, refundable service warranty
contracts and other insurance-related charges.
Auto Protection Plus will even cover your auto insurance
deductible of $500. The actual amount depends on your credit union's
program limits. Ask your lender/loan officer for details.
*GAP is required for members financing 72months
and more than 100 percent of MSRP on new vehicles and 100 percent
of NADA retail on used vehicles.