Guaranteed Auto Protection (GAP)
Guaranteed Auto Protection (GAP) covers that gap between the amount your car is worth (insurance settlement) and the amount you still owe in the event that your car is totaled or stolen and unrecovered. GAP supplements, but does not replace, your primary auto insurance coverage.
Example: After one year, the vehicle you purchased for $25,000 is now valued at $16,000. You still owe $20,000 when it is stolen and never recovered, or totaled in an accident. Most insurance policies will only reimburse you for the value of the auto, $16,000, leaving you to repay the remaining loan balance of $4,000. GAP provides for the waiver of that $4,000.
GAP Insurance is designed for all auto-buyers, whether you’re financing a new or used vehicle. It may even cover your insurance deductible – up to $1,000 – as part of your claim settlement. And, the cost of GAP can be financed with your loan! GAP will also give you $1,000 towards your replacement vehicle financed at the credit union.
It’s a great way to be sure you won’t be stuck paying for something you no longer have and it’s a lot of protection for a small cost. Ask for GAP whenever you apply for a People’s new or used auto loan.*
*Please visit your nearest branch location to receive a GAP Waiver Election Form for a complete list of benefits and rules. The purchase of GAP is voluntary and cannot be required as a condition of loan approval. GAP is a loan deficiency waiver and is not offered as insurance coverage. This service is offered by Allied Solutions.