If your car is totaled or stolen, who pays off your loan?
What is GAP Insurance?
Guaranteed Asset Protection (GAP) gives you peace-of-mind in the event your car is stolen or totaled.
GAP pays the difference between the actual cash value of your vehicle (as determined by your primary insurance company) and any unpaid balance. They use the NADA guidelines and market assessments done by their own adjusters to determine what value they are willing to pay off your vehicle. When you financed your car or truck, did you put any money down? If not, you probably rolled in taxes and perhaps an extended warranty to your loan balance. This sends the outstanding balance over the retail value of your car. This is where the “gap” is created. The difference between what you owe and what the car/truck is worth.
How Much Does GAP Insurance pay?
If you have Gap coverage, the insurance will pay up to 150% of the retail value according to the N.A.D.A. guidelines.
Is GAP Insurance Worth It?
Take a look at the math. We will help you run the numbers and understand the position you are in. We can assist you in deciding if it is necessary or not to have Gap Coverage for your circumstances.
Don’t worry, Credit Union of Denver has your back!
Experience Smart Banking – Call 303.239.1150 or 800.279.3288 today