YOUR AUTO INSURANCE DOES NOT COVER EVERYTHING
In the 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.
PROTECTION THROUGH GUARANTEED AUTO PROTECTION
PLUS
Guaranteed Auto Protection Plus Protects individuals
| Guaranteed
Auto Protection Plus is
a loan/lease deficiency waiver and is not offered as insurance coverage. |
who finance a new or used vehicle from the financial
GAP.
In 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.
| The
purchase of Guaranteed
Auto Protection Plus is
voluntary and cannot be required as a condition of credit approval. |
Guaranteed 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.
Guaranteed 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.
|
