Guaranteed Auto Protection |
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
Guaranteed Auto Protection Protects individuals who finance a new or used vehicle from
the financial GAP.
| Guaranteed
Auto Protection is
a loan/lease deficiency waiver and is not offered as insurance
coverage. |
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 is
voluntary and cannot be required as a condition of credit approval. |
Guaranteed Auto Protection 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 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 Credit Union loan officer for details. |
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