AUTO INSURANCE DOES NOT COVER EVERYTHING
event your vehicle is deemed a total loss due to an accident
or theft, your auto insurance policy will usually cover only
the actual cash value or market value of your vehicle less
a deductible. This settlement could be significantly less
than the amount you owe to your lender or leasing company.
The final result is a financial GAP where you must make up
the difference, which could mean thousands of dollars out
of your pocket.
THROUGH GUARANTEED AUTO PROTECTION PLUS
Auto Protection Plus Protects individuals who finance a new
or used vehicle from the financial GAP
Auto Protection Plus
is a loan/lease deficiency waiver and is not offered as
the current market, during the first few years that you own
your vehicle, your loan/lease balance can be higher than the
actual value of your vehicle, as a result of depreciation.
As your vehicle’s value declines, your loan/lease balance
may decline more slowly, resulting in a financial gap. If
your vehicle were stolen or totaled in an accident, you would
be liable to pay the difference between your insurance settlement
and your outstanding loan/lease balance.
Auto Protection Plus covers the difference between
the actual cash value of your vehicle and the loan/lease balance,
less delinquent payments, late charges, refundable service warranty
contracts and other insurance-related charges.
purchase of Guaranteed Auto Protection Plus is
voluntary and cannot be required as a condition of credit
Auto Protection Plus will even cover your auto
insurance deductible of $500 or $1,000. The actual amount
depends on your credit union’s program limits. Ask your lender/loan
officer for details.