Low-Cost Coverage for High-Cost Expenses.
Don’t Get Sideswiped: GAP Insurance Coverage is available on the following:
- Auto, SUV’s, Light duty trucks
- Watercraft (Boat)
- RV, Travel Trailers or Campers
Accidents happen. But what happens if your car is totaled, but its value is less than the amount you still owe on your auto loan? It’s called a coverage gap, and you may have to pay the difference out of pocket.
That’s where Guaranteed Asset Protection (GAP) can be a lifesaver. A GAP policy covers the difference between your loan balance and the amount your insurance policy would pay out if your vehicle were damaged beyond repair (totaled) or stolen and never recovered. It pays the “gap” so you aren’t burdened by the remaining balance of the loan.
GAP Coverage is particularly important if you haven’t made a large down payment on a vehicle. The value of the car may drop as soon as you drive it home- so it’s common to owe more than the car is worth if you finance the purchase price. It also may be required if you lease rather than purchase a vehicle.
GAP coverage is inexpensive and can be financed into the cost of your auto loan with CBI FCU. Contact us to get a quote for an auto loan or auto loan refinance.
- Gap coverage on Auto can’t exceed finance amount of $100,000 and term does not exceed 84 months.
- Gap coverage on Motorcycle can’t exceed finance amount of $50,000 and term does not exceed 84 months
- Gap coverage on Watercraft as long as there is value in NADA and the amount doesn’t exceed $100,000 and does not exceed 240 months
- Gap Insurance can be offered after the loan has been disbursed as long as you haven’t experienced a collision or theft.
- Gap Insurance can be cancelled up to 60 days (30 days in Colorado) for a full refund.