Because most insurance companies only cover the value of your vehicle, your loan balance could be higher than the value of your vehicle. Guaranteed Asset Protection, or GAP, is a non-insurance product that covers the “gap” between the vehicle’s value and the amount you still owe. GAP covers the deficiency balance on your auto loan if your vehicle is stolen or is determined a total loss by your insurance company.
WFTFCU also offers Auto Deductible Reimbursement (ADR) along with your GAP policy. ADR pays up to $500 per loss (limit of two losses per year) when a claim is filed and paid by your primary insurance carrier. Loss means an event for which the auto insurance company has approved and paid a claim which exceeds your covered auto deductible for a collision or comprehensive claim. If you suffer a loss during the coverage period which is covered by your auto policy, you may be entitled to reimbursement of the covered auto deductible. Reimbursement will be equal to the covered auto deductible on the auto policy, up to $500 per loss.
The cost of GAP/ADR is $375 and may be added to any future auto loan financing as well as any existing loans that you already have with the credit union.