Guaranteed Auto Protection (GAP)*
Now Includes Auto Deductible Reimbursement (ADR)
In today’s automobile market, a vehicle begins to depreciate the minute it is purchased. Unfortunately, monthly loan payments do not reduce the outstanding balance as quickly as the vehicle depreciates.
Because of this, a vehicle’ s outstanding loan balance is typically higher than its actual cash value, especially during the first few years of the loan.
When a vehicle is totaled or stolen, the member’s insurance settlement is based on the actual cash value of the vehicle. Because of the way your insurance claim could be paid, the settlement amount may be significantly less than the remaining loan balance. This may create a deficiency balance or "GAP" resulting in a serious financial hardship for our borrower. The "GAP" may even jeopardize repayment of the loan.
GAP is a non-insurance product that covers the difference of the loan payoff amount on a new or pre-owned vehicle and the actual cash value of the vehicle, when it is deemed a total loss by an insurance carrier due to theft or a major accident.
Now with an added benefit Auto Deductible Reimbursement.
Auto Deductible Reimbursement (ADR)
- Pays up to five hundred dollars ($500) per Loss (limit of two losses per year) when a Loss is filed and paid by the auto insurance company for a Covered Auto the Member owns or leases evidenced by the title or registration, AND insures under an Auto Insurance Policy designating the Member as the Named Insured.
- Loss means an event for which the auto insurance company has approved and paid a collision or comprehensive claim which exceeds the Auto Insurance Policy deductible for the Covered Auto.
- Coverage is effective upon date of enrollment and will continue for three (3) years.
If the Member suffers a Loss during the benefit period which is covered by the Member’s Auto Insurance Policy, the Member may be entitled to reimbursement of the Auto Insurance Policy deductible amount up to five hundred dollar ($500) per Loss. To be eligible for reimbursement the Member must own or lease and insure the Covered Auto under an Auto Insurance Policy designating the Member as the Named Insured.
*GAP and ADR are provided by Allied Solutions, a Provider of Smart Financial.