Guaranteed Asset Protection (GAP)
According to the Insurance Information Institute, a motor vehicle is stolen in the United States every 26 seconds. The odds of a vehicle being stolen were one in 190 in 2003, with the highest rate being reported in the Western U.S. In addition, there were over 6.2 million police-reported motor vehicle traffic crashes in 2004.
What is - GAP?
Unfortunately, things don’t always go as planned, and some situations are simply beyond our control. If your vehicle is stolen, accidentally damaged beyond repair, or declared a total loss, your automobile insurance will cover the vehicle’s replacement or market value. But the insurance settlement may not be enough to pay off your loan balance, causing a deficiency or “gap”.
Guaranteed Asset Protection (GAP) is a plan designed to cover the difference between your loan balance and the settlement provided by your auto insurance carrier.* In addition, GAP will cover your auto insurance deductible, up to $1,000.
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Example of How GAP Works:**
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Original Loan Balance
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$25,000
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Loan Balance After One Year
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$21,000
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Insurance Settlement After Accident
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$16,000
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Auto Insurance Deductible
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-$500
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Remaining Unpaid Loan Balance Without GAP
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$5,500
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Loan Balance With GAP Coverage
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$0
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GAP Features:
- GAP is offered by Allied Solutions and underwritten by Balboa Life & Casualty, rated “A-“ by A.M. Best Company
- GAP is a supplemental coverage and does not replace standard comprehensive, collision, and liability coverage
- Loan terms up to 72 months are covered
- No mileage or year restrictions
GAP Cost:
The cost of GAP is a one-time premium and covers the length of the loan term.
- $395 for automobiles, trucks, vans, and sport utility vehicles
Contact an Insurance Specialist
- Discuss your needs over the phone, or schedule an appointment by calling 714/258-4000 or 800/462-8328 ext. 4389, Monday through Friday, 9 a.m. to 5 p.m.
- Email insurance@SchoolsFirstfcu.org
GAP Waiver Addendum Election Form
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*GAP benefits do not include: loan interest accrued after the date of loss; amounts added to the loan after the loan has been funded, including late charges or other fees; delinquent payments, or any skipped payments more than 90 days past due; credit insurance premiums; Mechanical Breakdown Protection or service contract fees; deductions made by your primary insurance carrier for damages previously paid to you; portion of loan that exceeds 125% of MSRP (new autos) or 125% of Kelley Blue Book retail value (used autos); salvaged or reconstructed vehicles; vehicles used for commercial purposes; vehicles titled under a business or used to carry passengers for hire (i.e., taxi cabs, limousines); losses due to forgery, dishonest acts or intentional losses. GAP is not insurance, not a deposit, is not federally insured by the NCUSIF, and is not underwritten or guaranteed by SchoolsFirst FCU. Subject to eligibility requirements.
**Information in example provided for illustration purposes only. Actual insurance settlement and GAP benefit may vary.
