Guaranteed Asset Protection (GAP) with Deductible Assistance

GAP may reduce or eliminate the gap between what your auto insurance will pay and what you owe on your loan, if your vehicle is deemed a total loss. It can help cushion you and your family against sudden out-of-pocket expenses.

Most people believe that if their vehicle is totaled or stolen, their primary auto insurance will pay off their loan balance in full, which is not always the case. Your insurance carrier usually will pay only the actual cash value (current market value) of your vehicle at the time of loss, less your deductible. The amount could be substantially less than your APL FCU loan balance.

How GAP Works

  • One-time cost of just $425, which is less than half what most dealers charge
  • Protect the difference between the primary insurance settlement and the balance remaining on the loan.
  • Cost can be rolled right into your vehicle loan.
GAP EXAMPLE DOLLARS

Original loan amount financed at APL FCU

$20,000

Loan balance at the time of loss

$15,000

Your primary insurance company’s settlement, less deductible

$13,000

Remaining loan balance

$2,000

The total you owe with GAP coverage to pay off your loan is*

$ 0

* Please see a credit union representative for specific details about GAP features, benefits and any exclusions that may apply.

What is Deductible Assistance?

It provides financial relief when your vehicle is damaged, but not deemed a total loss. If auto repairs cost more than your deductible, the deductible amount is applied to your loan, reducing what you owe. 

Is Your Vehicle Eligible?

Your APLFCU vehicle loan is eligible for GAP coverage if it fits any of the following categories:

  • New and used vehicles
  • Private passenger autos, vans, or trucks (not exceeding one-ton towing capacity)
  • Motorcycles

You can purchase GAP coverage for your existing APL FCU vehicle loan anytime during the life of the loan.

Don’t Forget About Payment Protection