Optional Gap Insurance
A new car loses 11% of its value the moment you leave the lot; during the first five years, the car depreciates 15-25% each year.
Guaranteed Asset Protection
helps borrowers avoid financial loss in the event their vehicle is totaled or stolen. Since Insurance settlements are based on the car’s actual cash value, they are often less than the loan balance. This creates a deficiency balance or a “gap” that could jeopardize repayment. GAP pays the covered deficiency balance, preventing the customer and financial institution from a possible loan loss.
What Does GAP Insurance Cover?
For just $385, repaid over the life of the loan, GAP Insurance covers the difference between your primary carrier insurance settlement and the payoff of your loan on the date of the loss. Included in this coverage is your insurance deductible up to $1,000. GAP Insurance also pays an additional $1,000 towards the purchase of a replacement vehicle when financed through UMassFive College Federal Credit Union.
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