Protecting Your Automotive Investment
GPO Federal Credit Union makes it easy to pay off your car loan if your car
is totaled or stolen by offering Guaranteed Asset Protection (GAP) with its
auto loans.
GAP pays the difference between the actual cash value of your vehicle and the
outstanding loan value at the time of your loss.
Here’s an example of how GAP insurance could work for you:
| Loan balance after one year |
$15,000 |
| Value of car after one year |
$10,000 |
| Insurance settlement |
$10,000 |
| Deficiency balance |
$5,000 |
| GAP pays |
$5,000 |
| You owe |
$0 |
Without GAP coverage, you’d be liable for the $5,000 deficiency balance.
GAP insurance is available for automobiles,
motorcycles, vans, and light trucks, including
sport-utility vehicles. Both new and used vehicles
are eligible for coverage.
If you get GAP insurance and then, for whatever reason, decide you want to
cancel the policy, you can get a full refund within the first 60 days that the
policy is in effect.
GAP does not cover the following:
• Late charges or other fees added after the loan’s inception
• The cost of the GAP waiver
Make sure you protect your automotive investment. Get GAP insurance with your
next auto loan! |
